Global Community

Global Commitment 2008 Corporate Responsibility Report Prepared by AMR Corporation About This Document

AMR’s commitment to sustainability includes responsible production of this document. Its horizontal format is designed for easier on-screen viewing. We have

endeavored to embed hot links within the report to previous reports and other digital resources outside this document to increase its value to readers and avoid unnecessary duplication. Please print it only if necessary.

1 AMR Corporation • Corporate Responsibility Report Dear Friends of AMR Corporation:

For more than 80 years, through good times and bad, AMR Corporation (AMR) has sustained its position as one of the world’s leading airlines. We have not done it alone. Our success has been built on the support of our customers, employees, shareholders, and the communities we serve and call home. In turn, we have done our best to make AMR a good place to work, a good neighbor, a positive contributor to the economy, and a reasonable investment.

The theme of this year’s corporate responsibility report is commitment. The report aims to provide a clear picture of AMR’s commitment to being a responsible corporation and describe the steps AMR is taking to meet the commitments made to the company’s many constituencies. The report also highlights how AMR’s employees demonstrate genuine care and citizenship in communities around the world beyond compliance with government rules and regulations.

This year’s report has been enhanced in two important ways. First, it contains much more information than last year’s report, in keeping with AMR’s commitment to communicate with employees, customers, suppliers, communities, and investors. Second, the report provides more examples of AMR employees volunteering their time and talent to bring the value of these activities to life.

The choices AMR makes will always be driven by the values and aspirations that have sustained the company for more than 80 years. We are committed to improving our performance each and every year. I encourage you to chart our progress in the years to come.

Gerard Arpey1 Chairman, President, and CEO AMR Corporation and American Airlines

1GRI standard disclosure 1.1

Global Community • Global Commitment 2 3 AMR Corporation • Corporate Responsibility Report Contents 02 Letter from the CEO 05 About This Report 07 Our Global Committment 11 Governance 21 Focus on Safety 29 Focus on Environment 47 Focus on Employees 53 Focus on Diversity 63 Focus on Communities 73 Focus on Reliability and Customer Service 79 Appendix A: GRI Index 83 Appendix B: Greenhouse Gas Methodology 88 Appendix C: Fleet Inventory

Global Community • Global Commitment 4 About This Report2

This report is our first corporate responsibility report (CRR) and represents our efforts to expand the scope of our reporting to include more in-depth social and economic aspects of AMR Corporation (AMR). Close followers of AMR will note this was one goal set forth in our 2007 environmental responsibility report (ERR). We are happy to have achieved that goal and present this CRR, our first fully integrated record of corporate citizenship, economic impact, and environmental performance. This CRR is for calendar year 2008.

This report has been completed to meet the Global Reporting Initiative (GRI) Level C reporting requirements for AMR, the parent company of American Airlines (American) and its regional affiliate, American Eagle (Eagle). Unless otherwise specified, any reference to AMR indicates that the subject material applies broadly to both airlines. Where constraints associated with data collection have limited our reporting ability in select areas, we have estimated relevant values or included statements indicating whether we believe the incomplete measurements are material.

2GRI standard disclosure 3.1-3.8, 3.10-3.11, 4.14-4.15 5 AMR Corporation • Corporate Responsibility Report This report is organized to provide a broad overview of AMR’s corporate responsibility efforts. In the first section we provide a brief profile of AMR and our commitment to responsible corporate behavior. This is followed by a thorough description of our corporate governance policies. The remaining sections address key business issues: safety, environment, employment, diversity, community, and reliability. Many of our readers will be interested to know the type and scope of community involvement, volunteerism, and general philanthropy in which we and our employees participate. To provide some insight into this part of our culture, we have included a small description of select activities at the end of each major section.

We continued our efforts to engage our stakeholders during the production of this CRR to ensure and enhance transparency. Internally, the participation of our departments and business units continues to expand. Externally, we continued our collaboration with our Ceres stakeholder advisory team introduced in our 2007 ERR. We sincerely thank each of these individuals. Their efforts continue to enhance our ability to report and the quality of the information.

AMR’s commitment to corporate responsibility includes environmentally sensible production of this document. Its horizontal format is designed for easier on-screen viewing. We hope that for most readers this will eliminate the need to print this report.

With this CRR, we reaffirm our commitment to produce a CRR annually. Our goals for future reports will include evaluating increased use of hyperlinks to previous reports and other digital resources to increase its value to readers and eliminate the duplication of information easily obtained elsewhere. We welcome feedback regarding our corporate responsibility efforts and this report. For more information about this report, please contact Mr. Tom Opderbeck at [email protected].

Global Community • Global Commitment 6 Our Global Commitment3

The history of AMR can be traced back to 1929. Today, American is a global airline with service to more than 250 cities in 50 countries, and we take pride in bringing people together. Based in Fort Worth, Texas, AMR’s operations are almost entirely within the airline industry. The company carries over 100 million passengers and transports more than a half million tons of cargo annually. In addition, American is a founding member of the oneworld Alliance®. A complete organizational profile is available atwww.aa.com/aa/i18nForward.do?p=/ amrcorp/newsroom/amr-corporation.jsp and is included in our annual report filed each year with the U.S. Securities and Exchange Commission (SEC).

Corporate responsibility has different meanings for many organizations. At AMR, we view it as our responsibility to do our part to influence global solutions for the benefit of generations to come. The scale of our operations affords us the opportunity to affect positive change around the world. We appreciate this opportunity and take pride in employing practices that positively impact our commitment to diversity, corporate citizenship, and environmental performance — the major platforms of our corporate responsibility program. Like any natural system, these platforms are deeply connected and do not stop at national or continental boundaries. For this reason, AMR’s global commitment to corporate responsibility touches every department in every corner of our global organization and every aspect of our business.

3GRI standard disclosure 2.1-2.9 7 AMR Corporation • Corporate Responsibility Report Although the airline industry is a complex and changing industry, we have always believed that our responsibility to employees is to: • Provide competitive pay and benefits • Ensure a respectful and safe work environment • Embrace diversity and promote inclusiveness • Extend opportunities for career growth and development

Our customers’ needs can be simply expressed: • Be safe and secure • Arrive at destinations on schedule • Receive bags and cargo on schedule and in the expected condition • Interact along the way with competent, caring, and pleasant individuals

We strive to make a positive contribution to the many communities we serve around the world by: • Connecting developing and mature markets • Providing high-quality employment opportunities • Protecting environmental resources • Supporting local and regional economies • Sharing our time, talent, and other resources with local non-profit organizations

Our long-standing and global commitment to diversity, environmental responsibility, and ethical business practices is fundamental to our operations. It is also a key to our sustained success and why our employees, customers, and communities place their trust in AMR.

We understand that practicing corporate responsibility is not always easy. Compromise is sometimes required. But when done right, sustainable practices create a new sense of optimism and belief that economic success and corporate responsibility are not mutually exclusive. Indeed, these practices provide a more hopeful and constructive way to organize our business activities that inspire and motivate others to embrace a new outlook in diversity, corporate citizenship, and environmental performance.

Global Community • Global Commitment 8 AMR Global Corporate Responsibility Statement As a global airline carrying more than 100 million passengers and more than practices takes many forms — from ethical governance to our commitment to 500,000 tons of cargo a year, AMR promotes commerce, trade, and economic diversity and inclusion, to our focus on safety, the environment, and giving back to prosperity, as well as a sense of global community and citizenship. Our business our communities. We continuously strive to make a positive impact in the lives of also affects the environment around us, and we are committed to being good our customers, employees, shareholders, and in the communities and environments stewards by minimizing our environmental footprint. where we live, work, and play.

With more than 80,000 employees worldwide, we understand that our Our commitment to corporate responsibility is more than a business decision. It’s responsibility as a global citizen begins with our people and extends to an important part of our culture — part of who we are. At AMR, operating in a communities around the world. Our sustained investment in responsible business responsible manner is not just an aspiration; it’s the way we do business.

Social Economic Environmental

• AMR connects mature and developing • In 2008, AMR generated nearly $24 billion in • AMR emitted 29 million metric tons of carbon

markets in more than 50 countries. revenue and maintained more than 84,000 dioxide equivalents (CO2e) in 2008, a decrease high-quality jobs. of 5 percent from the previous year. • We serve many cultures and embrace that diversity in our operations with the help of 16 • We directly and indirectly contribute $115 • Our intensity ratio, as measured by emissions Employee Resource Groups. billion to the U.S. economy and more than per revenue ton mile, increased by 0.3 percent 900,000 jobs. in 2008 due to lower payload. • We provided $28 million in contributions to charitable causes in 2008. • In 2008, we contributed $3 billion in taxes • We are keenly focused on increasing our fuel and fees to the U.S. government and public efficiency 30 percent between 2005 and 2025 • We empower our employees and customers entities, and an additional $900 million to non- to reduce our environmental footprint. to make a difference that results in positive U.S. government and public entities. impacts beyond what AMR can do alone. • We continue our fleet renewal efforts • We provide a key service that promotes introduced in our 2007 ERR, and we support • We respond when needed most, supporting economic growth in communities around the efforts to develop alternative and renewable disaster relief in the U.S. and abroad. world. aviation fuels.

9 AMR Corporation • Corporate Responsibility Report When done right, sustainable practices create a new sense of optimism and belief that economic success and corporate responsibility [are not mutually exclusive.]

Global Community • Global Commitment 10 11 AMR Corporation • Corporate Responsibility Report Governance4 AMR recognizes that strong corporate governance is critical to achieving long-term success in our business.

We have established a diverse representation of board members, who are considered independent, with the sole exception of CEO Gerard Arpey. Approximately 50 percent of our board is composed of female and minority directors.5

Good Governance Practices at AMR Our sound corporate governance is reflected in strong rankings of our board and its practices by independent governance rating associations. Some of the practices that demonstrate our strong board governance include: • Board members are elected annually • Board members, including those on standing committees, are considered independent, with the exception of CEO Gerard Arpey • Each director who receives more withheld votes than votes for his Governance Ptractices or her election must tender his or her resignation • Board members meet frequently each year, often in executive sessions without any member of management (including the CEO) present • Shareholders can call special meetings, including to remove/elect directors • Shareholders can act by written consent without a meeting

4GRI standard disclosures 4.1-4.2, 4.4-4.6, 4.8, 4.10, 4.16 5GRI performance indicator LA13: All AMR board members are over the age of 50; 31 percent are minority; 15 percent are women. Global Community • Global Commitment 12 The board, often by and through its standing appropriate processes for the board and outside consultants, Deloitte Consulting and committees, oversees many aspects of our social its standing committees. It recommends Hewitt Associates, provide third-party, expert and corporate responsibility policies and activities, candidates for officer positions and, along with analyses and marketplace data to make sure as described below. AMR’s board has four the CEO, reviews our succession planning. American’s compensation levels are reasonable independent standing committees: and fair. The Compensation Committee believes • The Audit Committee selects and oversees AMR’s board of directors’ governance policies that the median reflects competitive market our independent auditors and reviews the govern certain procedures and protocols of the compensation for our executive officers, and scope and results of their annual audit, board. The governance policies are available in in 2008, it approved executive compensation including its assessment of internal controls. the Investor Relations section of our Web site, packages that are consistent with that policy. This committee also reviews and discusses www.aa.com/investorrelations, by clicking on the Management compensation also is harmonious our internal assessment of our safety, security, “Corporate Governance” link. Additional details with the terms of the Annual Incentive Plan, as and environmental measures, as well as of board and committee responsibilities and the agreed to in Letters of Agreement reached with our employee legal, ethical, and conduct frequency of meetings in 2008 are published the unions during the 2003 restructuring. complaints. in our 2009 Proxy Statement, also available at • The Compensation Committee establishes www.aa.com/investorrelations. The compensation policy strongly links pay to and implements our executive compensation performance, which aligns the personal interests objectives and approves all executive Executive Pay of executives with those of shareholders. Total compensation. As part of this role, it also AMR is committed to responsible corporate compensation for AMR executives includes a mix determines metrics for performance-based compensation policies. One tool employed to of base salary and “at-risk” compensation. At-risk awards for executives. align the interests of AMR with those of our compensation is primarily provided through grants • The Diversity Committee provides oversight, executive managers is responsible, merit-based of stock-based compensation and participation counsel, and guidance to senior management executive pay. Our Compensation Committee, in compensation plans tied to achieving strategic, on issues related to diversity and inclusion, which comprises directors who are independent financial, and operational goals and performance including: from the company, benchmarks executive measures. In 2008, the at-risk portion of our - Equal employment opportunity policies compensation with eight major U.S. passenger executive compensation program represented - Hiring practices and employee airlines and 26 additional public companies more than 70 percent of executive officers’ total retention issues of comparable revenue size and operational compensation package. Less than 25 percent of - Corporate procurement decisions, including complexity. We target executive pay at the median senior management’s income is salary-based or oversight of our Supplier Diversity Program of this benchmark group — approximately half fixed. For senior executive officers, on average, • The Nominating/Corporate Governance of the benchmark executives make more than only 15 percent of income is fixed. However, Committee establishes and implements American executives and half make less. Two approximately 94 percent of front-line employees’ income is salary/wage-based or fixed.

13 AMR Corporation • Corporate Responsibility Report Due to the financial and economic challenges facing • We do not take unfair advantage of anyone completed this online training.7 They in turn the airline industry, linking executive pay to company through manipulation, concealment, abuse of communicate our standards to their staff. As a performance has resulted in our executives being paid privileged information, misrepresentation of material result of this recurrent training and consistent approximately 67 percent of the total compensation facts, or any other unfair-dealing practice. communication, our employees conduct granted to them for the years 1998 through 2007. • We do not tolerate unlawful discrimination, Cash bonuses under our annual incentive plan have harassment, or hate-related behavior. The AMR code of ethics not been paid out since 2001, for performance in • We continually encourage our employees to be 2000, because the profitability targets are so difficult responsible for their own actions. No one will addresses many areas of our to achieve. In addition, there have been many years be excused for misconduct just because it was business practice, including: when distributions under our long-term stock incentive directed or requested by someone else. · Reporting illegal or unethical conduct plan resulted in extremely modest distributions. • We educate our staff that they are also responsible for the conduct of employees reporting to them · Antitrust and restraint of trade Detailed information regarding our merit-based and can be held responsible for negligently failing · Bribes, illegal payments, and illegal executive pay system is available in our 2009 Proxy to take reasonable steps to prevent and detect solicitations Statement published at www.aa.com/investorrelations. criminal conduct by their employees. · Political contributions • We encourage all our employees to immediately · Books, records, and communications Code of Ethics6 report suspected illegal or unethical activity, · Intellectual property AMR’s policy is to maintain the highest standards including financial fraud/accounting matters. · Inside information and investment in Implementing the Standards of safety, legal, and ethical conduct in transacting • We do not tolerate retaliation against employees securities business. To ensure ethical compliance with both the who act in good faith by reporting suspected illegal · Environment and safety letter and spirit of the laws in every country in which acts or unethical behavior and we are prepared · Conflict of interest we do business, we developed a Business Ethics to react swiftly against anyone encouraging such · Gift policy for public officials & Compliance Program and adopted standards behavior with corrective action and possible · Data privacy termination. of business conduct for all employees. The basic · Training records principles of our standards: · Unlawful harassment • Safety is the first consideration at AMR. It is Through our business ethics and compliance training · Hate-related conduct crucial that all employees perform their jobs with and an annual compliance certification, we provide · Workplace violence the highest regard for safety — both for our anti-corruption and business ethics training to all upper- customers and their fellow employees. level management and most lower-level management · Rules of conduct employees. In 2008, 91 percent of this group had · Business ethics training and compliance certification

6 GRI performance indicator SO2 7GRI performance indicator SO3 Global Community • Global Commitment 14 themselves with the highest standards of We understand that these dealings need to be on critical issues such as energy, infrastructure honesty, integrity, and fairness when dealing with honest, ethical, and transparent, and we are revitalization, and pension reform. Contributions customers, suppliers, competitors, the general committed to those values. Our Legal Department from the PAC to lawmakers are based on specific public, and other employees.8 oversees regular periodic review of the behavior criteria, including voting record or position on of its senior managers in the United States and specific company-chosen issues, regardless of Public Policy Development9 abroad to ensure compliance with federal law, political affiliation. Because of the airline industry’s history of public including the Foreign Corrupt Practices Act. regulation and its reliance on public agencies for American also is an active participant in the Air provisions of airport and airway infrastructure, In 1985 AMR formed the American Airlines Transport Association (ATA) and the International AMR has long maintained relationships with Political Action Committee (PAC), funded through Air Transport Association (IATA), which are the federal, state, and local officials in the U.S. and employee contributions. Through the PAC, support domestic and international trade organizations for their counterparts in the several dozen countries is provided to lawmakers who share our position the airline industry. Similarly, Eagle is an active that we serve. participant of the Regional Airline Association (RAA). The ATA, IATA, and RAA represent the aviation industry from an advocacy perspective to ensure domestic and worldwide regulations foster a healthy, competitive industry. In addition, they play an important role in communicating technical expertise and operational knowledge to improve our safety, service and efficiency.

8GRI performance indicator SO4 9GRI performance indicator SO5

15 AMR Corporation • Corporate Responsibility Report Funding For NextGen10

AMR supports funding of the NextGen Air including surveillance (ADS-B), navigation (RNP and billion in funding for NextGen will generate 77,000 Transportation System as an important investment RNAV), and safety-enhancing equipment (cockpit jobs. These jobs will be created throughout the needed to increase the efficiency of the aviation displays). An infusion of governmental infrastructure industry for manufacturers, equipment installers, and industry. The world is increasingly dependent on funding would jumpstart the modernization of the airlines. The Federal Aviation Administration (FAA) the rapid transport of products and people enabled air traffic control system, advancing the schedule has already developed a process to fund these types by aviation. It is a critical time to make wise and resulting in job creation, a reduction in carbon of projects, and it has indicated it will be able to investments that will begin modernizing the outdated emissions, and an air transportation system supporting move these new projects forward quickly if funding air traffic control system, reduce emissions and fuel economic growth. This investment reduces carbon becomes available. consumption, improve safety, and stop the loss of emissions, promotes economic growth, and would also aviation jobs. help address the record delays and congestion that the Finally, accelerating the NextGen program will result in aviation industry experienced in 2008. tangible improvements in capacity and environmental Specifically, a significant investment is needed performance. The FAA states the full implementation now to support advanced avionics equipage and NextGen investments will protect existing jobs and of NextGen could reduce greenhouse gas (GHG) the necessary procedures needed to meet future restore jobs lost within the aviation industry. This emissions from aircraft by up to 12 percent by 2025. NextGen Air Transportation System requirements, includes indirectly increasing aircraft sales by enabling This reduction in CO2 production is roughly equivalent demand growth. It is estimated that an infusion of $4 to taking 2.2 million cars off the road. 10GRI standard disclosures 4.12-4.13

Global Community • Global Commitment 16 Climate Change11

AMR recognizes climate change as one of the most efficiency improvement is reflected in our impressive that promote a financially strong airline industry and important issues the aviation industry will face in the track record. In the past 30 years, the fuel efficiency healthy financial markets will be needed to enable first half of the 21st century, and we are committed of U.S. commercial airlines has more than doubled. our investment in new, efficient aircraft. Support to minimizing our GHG emissions. While we are a for airline infrastructure investment, particularly the carbon-intensive industry, our industry also plays AMR has committed to continuing our past progress modernization of our air traffic control systems, will be an irreplaceable role in the world economy and its with an aggressive goal to improve efficiency by an needed to optimize route plans and reduce wasteful communities. By safely and efficiently connecting additional 30 percent between 2005 and 2025. As delays. Research and investment in alternative fuels people and products, the airline industry is a key with any thoughtful goal, our success will depend on will be needed to provide the industry with a low- driver of social and economic progress. creative problem solving, proper planning, and strong carbon energy source. execution. But improving aircraft efficiency will also Given the oversized role that jet fuel — by far our depend on events outside our direct control. At AMR, we continue our climate change largest source of GHG emissions — plays in our commitment through our own efforts and through industry, we have long been focused on maximizing A key success factor to reducing our GHG emissions working with others to lay the groundwork for greater the fuel efficiency of our fleets. This attention to fuel will be prudent public policy decisions that help efficiencies. We believe this not only helps protect make efficiency improvements possible. Policies the environment but also helps maintain the many benefits of air travel.

11GRI performance indicator EC2 17 AMR Corporation • Corporate Responsibility Report Antitrust Immunity and Joint Business Agreement Airlines with immunity have a strong track record of transatlantic growth that has The United States-European Union (EU) Open Skies Agreement, which far outpaced the growth of American, British Airways and Iberia Airlines. From became effective March 30, 2008, changed the landscape of international 1992 to 2009, Northwest and KLM grew transatlantic capacity by 53 percent aviation by replacing restrictive bilateral air services agreements with a compared to 37 percent for American-British Airways and 16 percent for single liberalized accord. The Open Skies Agreement allows any U.S. or EU American-Iberia Airlines. From 1995-2009, United-Lufthansa grew transatlantic carrier to fly between any point in the U.S. and any point in the EU. Current capacity by 88 percent, compared to 18 percent for American-British Airways restrictions on foreign ownership and control of U.S. and EU carriers make and 14 percent for American-Iberia Airlines. From 2001-2009, Delta and Air it impossible for any single carrier to have a comprehensive global network. France grew transatlantic capacity by 17 percent while American-British Airways However, the U.S. Department of Transportation (DOT) has the authority to and American-Iberia Airlines capacity was roughly flat to down slightly. approve and immunize alliances between U.S. and foreign airlines from the U.S. antitrust laws. Immunized alliances have historically enabled airlines to After receiving antitrust immunity, American, British Airways and Iberia Airlines offer consumers better service and a better competitive edge in a global would implement a joint business agreement (JBA) for flights between North marketplace; however, vibrant inter-alliance competition is necessary for America and Europe. This JBA would give the three airlines the ability to consumers to enjoy the full benefits. work together on all transatlantic service. The carriers would link, coordinate, and market their three networks in ways that are not possible today, while Antitrust immunity is critical for American and the oneworld alliance to remaining individual companies with separate workforces, fleets, operations, remain competitive in an increasingly global industry. SkyTeam and the brands, and identities. Employees are expected to benefit from the airlines’ Star Alliance, oneworld’s two alliance competitors, have already received improved stability, financial resources and competitive position. The airlines are antitrust immunity. Thus, both SkyTeam and Star Alliance hold a significant expected to have a greater ability to invest in their people, products, services, competitive advantage over the oneworld alliance by allowing them to and fleets over the long term. The agreement is fundamentally the same as the provide a more seamless and integrated product to their customers. In a agreements under which SkyTeam and Star Alliance operate today. tough global economy marked by severely shrinking demand for travel, it is critical for oneworld and American to compete on equal footing in the marketplace. In August 2008, American, along with British Airways, Iberia Airlines, Royal Jordanian, and Finnair (oneworld members making transatlantic flights) asked the DOT for the same immunity that Star Alliance and SkyTeam possess. Antitrust Immunity will help American and oneworld level the playing field against these two larger alliances and permit them to work more closely to coordinate routes, prices, frequent flyer programs, and services for customers. Customers would also receive greater access to discounted fares. A decision is expected from the DOT by Oct. 31, 2009. Additionally, these five airlines are working to ensure that their plans meet the expectations of European regulators.

Global Community • Global Commitment 18 AMERICAN AIRLINES’ AND AMERICAN EAGLE’S VETERANS AND MILITARY INITIATIVE12

American has a long history of supporting veterans and military personnel, and this initiative creates opportunities for employees to engage in an area where there is significant employee involvement at a grassroots level in addition to the corporate efforts. The company’s efforts include honoring veterans through special events and tributes, which provide positive and memorable experiences for soldiers, veterans, and their families, and fundraising events. A snapshot of American’s primary activities: • Seats for Soldiers — For the past five years, American and the Dallas Mavericks have partnered to bring 150 soldiers from Brooke Army Medical Center in San Antonio to the American Airlines Center to watch a Mavericks game from front-row seats, valued at more than $200,000. Flight crews donate their time. • Snowball Express — This initiative provides memorable and fun experiences for children and spouses of fallen military heroes. American provides the majority of flights for nearly 1,400 people to take an all-expenses- paid vacation. • American and the Huey 091 Foundation — Together, the two organizations have provided more than 25 iBOTs® — highly specialized wheelchairs that are truly life-changing in the capabilities they provide — to severely wounded service members. • Veteran Military Employee Resource Group — Though established only recently (in November 2008), this organization has provided calling cards worth $4,000 to service men and women by collecting and recycling used cell phones. • Sky Ball — This event raised more than $600,000 for the Navy, Air Force, Marine Corp, National Guard Relief Fund, and families at the Naval Air Station Joint Reserve Base in Fort Worth, Texas. American has teamed up with the Fort Worth Air Power Foundation each year since 2003, and more than 700 American and Eagle each dedicated a yellow-ribbon aircraft as part of a Veterans Day observance at Dallas-Fort Worth Airport. The tails on the American Boeing 757 and Eagle ATR employee volunteers supported the 2008 event. bear the iconic yellow ribbon to remind everyone to honor the men and women of the military. 12GRI standard disclosure 4.12

19 AMR Corporation • Corporate Responsibility Report Snowball Express — AMR, Airpower Foundation Give It Up Beyond Funding for Veterans and Military Families American also seeks out ways AMR employees are passionate about helping veterans and military to bring pure fun into the lives families. of children who need it most. Few things are a faster route That sentiment was evident at the 2008 annual Airpower Foundation’s to a child’s heart than a trip to Sky Ball on Oct. 11, when more than $600,000 was raised for families Disneyland. of north Texas military members serving in Iraq and Afghanistan.

Inauguration of the Flagship Freedom aircraft in At Christmastime in 2008, recognition of the men and women in the armed forces. More than 750 American volunteers supported the event, attended by American’s Seattle employees more than 3,000 guests. It was an evening of non-stop entertainment pulled together to give royal that included the first-ever night air show over Fort Worth. treatment to children of soldiers killed while serving in the U.S. armed forces. The children and surviving spouses were treated to a winter wonderland at Proceeds support veterans and active military in many forms, including gate No. 9 at Seattle-Tacoma International Airport, complete with a castle and financial aid for deployment, welcome-home receptions, comfort American employees dressed in full gatherings for families, support for the welfare and relief projects of the holiday regalia. units assigned in north Texas, and delivering care packages and other gifts to the soldiers wounded in battle who are recuperating at Texas But the experience was more than a dream come true for the families treated military hospitals. to the trip. American employees who didn’t even know each other provided a one-of-a-kind experience for the families. Emotions ran high as teary-eyed Brooke Army Medical Center presented iBOTs® to two veterans who employees checked in baggage. One stood in full salute as the children and suffered injuries while serving their country. The iBOT®, a state-of-the- parents were taxied in. art mobility device, provides significantly more flexibility and freedom to users than ordinary wheelchairs. But the $25,000 price tag keeps it “Everyone wanted to make sure it was an incredible experience for the kids, from being an option for most soldiers. but as it turned out, it was an incredible experience for us,” says Seattle agent Tina Towner. “Helping North Texas military families is important to the employees of American Airlines and American Eagle because they know these are our neighbors fighting to defend our freedom,” said Mike Snyder, Fort Worth Airpower Foundation chairman. “These employees have made this effort their own. Without their passion, this cause and this event would not be possible.”

For its efforts, AMR was honored with the Tony Orlando Yellow Ribbon Award in recognition of its commitment to veterans’ initiatives. 12GRI standard disclosure 4.12

Global Community • Global Commitment 20 21 AMR Corporation • Corporate Responsibility Report Global Commitment: In-Flight Safety Focus on Safety No commitment is more important — or pursued more pervasively or with In any number of ways, our safety commitment greater energy, day after day — than our commitment to the safety of customers. focuses on the physical well-being of customers Indeed, safety is at the core of our airline and employees. operations, and we have developed an array of initiatives to help meet our But other important dimensions of safety focus on customer service and transportation initiatives aimed at ensuring that every experience with American is both safe and objectives in the air and on the ground. enjoyable. Day in and day out, in every aspect of our operations, we strive to create an In addition to our internal safety efforts, environment that allows customers to fly with us — and employees to serve with us — our operations receive extensive external in complete confidence, no matter where they may be in the global network. oversight to ensure that every flight is conducted as safely as possible. Internal Oversight The core of our safety oversight is our Safety Management System (SMS). The SMS [ ] consists of 12 data collection and analysis programs that continuously monitor the safety of every aspect of our operations. Examples of these collection and analysis programs include: For all of us at AMR, our first foremost consideration in every • Flight Operations Quality Assurance (FOQA): FOQA collects and analyzes digital flight and top priority is the safety decision and in every facet of our data generated during normal flight operations. This data provides greater insight into the total flight operations environment. and security of our co-workers company. • Aviation Safety Action Program (ASAP): The foundation of ASAP is a safety and customers. We strive to be partnership between the FAA, AMR, and our employee labor unions. The program’s the world leader in safety and We are committed to a culture that focus is to encourage voluntary reporting of any safety issues and events that come recognize that a safe operation has safety, security, and quality to the attention of pilots, flight attendants, dispatchers, and maintenance workers. is the key to our success. To as fundamental priorities. We all Events or issues are analyzed, and corrective action is taken when necessary. In conjunction with the FAA, American was the first airline to implement ASAP. reach this goal, we rely on both have a personal responsibility • Internal Evaluation Program (IEP): IEP audits and inspects company policies, our safety management system to promote a safe workplace procedures, and systems to identify and correct potential findings before they occur. and the sound judgment and and continually improve safety IEP provides a functionally independent review beyond what is required for regulatory experience of our employees. throughout our company. compliance. Safety must be the first and AMR Commitment to Safety and Security

Global Community • Global Commitment 22 Any incidents or adverse trends are flagged and Eagle passed audits in more than 900 and reviewed by working groups made up of standards developed in cooperation with the employees representing our labor unions and world’s leading airlines and regulators (including management. Procedures allow the working the FAA, the Civil Aviation Safety Authority, groups to bring their findings to the appropriate the European Joint Aviation Authorities, and level of management, including senior Transport Canada), representing industry best management, when necessary. practices in all aspects of operational safety. Meeting the IOSA standards is a challenge for External Oversight any airline and results in safer air travel for all AMR, like all airlines, is subject to the safety our customers. requirements of external regulatory authorities. • Like our oneworld alliance partners, we allow Our safety program is designed and executed the IATA to conduct operational safety audits to meet all the requirements of these regulators. of our operations every two years. This helps To ensure compliance, we undergo scheduled establish standardization in airline operations and unscheduled audits by regulatory authorities and safety oneworld alliance partners. such as the following: • The U.S. Department of Defense conducts • The FAA provides continuous oversight periodic audits of our operations because we are of all aspects of our operations. Local contracted to carry U.S. soldiers when needed. inspectors assigned to American and Eagle • As part of the European Aviation Safety audit operations as part of the FAA’s Air Audit, the maintenance work we perform for AMR is committed Transportation Oversight System (ATOS). other airlines is reviewed for compliance with to the safety of our In addition, AMR participates in the Air international standards. Carrier Evaluation Process (ACEP), in • Civil aviation security authorities (the employees while which inspectors from the FAA’s national Transportation Safety Administration, the United they go about their headquarters review our operations. Kingdom’s Department for Transport, Transport • AMR holds the International Air Transport Canada, etc.) in the countries where we provide work and as they go Association (IATA) Operational Safety Audit service regularly audit and inspect our facilities about their lives. (IOSA) safety certification — the global and operations to ensure compliance and to industry standard for airline operational safety verify that proper security and safety measures [ ] management. To gain certification, American are in place.

23 AMR Corporation • Corporate Responsibility Report Employee Protection

12 Elements of the PFS Safety Management System • Institutionalize employee safety as a core value for American. • Focus on having a culture that Leadership puts employee safety on the • Visible, demonstrated commitment • Clear, meaningful policies and principles same level as many customer • Challenging goals and objectives service initiatives. • High standards of performance • Provide training, coaching, Action skills, and structure to leaders Structure • Line management accountability • Continuous training and development and front-line employees. • Integrated organization structure • Thorough investigations Partnership for Safety Goals Partnership • Continuously improve safety • Supportive safety staff • Effective observations • Progressive motivation • Open communication process and reduce employee injuries.

AMR is committed to the safety of our employees while they go about their Teamwork may seem like an overused buzzword. But since no single person work and as they go about their lives. To facilitate this continuous effort, we can get an airplane safely offLeadership the ground, teamwork and safety areStructure inseparable Action consulted with industry leaders to develop our Partnership for Safety (PFS) principles. AMR’s PFS is perhaps the ultimate teamwork experience. initiative. PFS is a joint effort between management, unions, and employees • Visible, Demonstrated Commitment • Line Management Accountability • Continuous Training and that focuses on safety at work and at home. The initiative began at our Chicago station in 2004. In 2008, we completed Development

the extension of this initiative• Clear,to all Meaningful U.S. and PoliciesCanadian and stations, representing• Integrated Organization Structure • Thorough Investigations approximately 75 percent of Principlesour employee network. In 2009, PFS has expanded internationally, starting at London Heathrow, our largest international station. • Challenging Goals and Objectives • Supportive Safety Staff • Effective Observations

• High Standards of Performance • Progressive Motivation • Open Communication Process

Global Community • Global Commitment 24 Thanks to PFS and the efforts of every participant, there were almost 29 percent fewer employee injuries at work [ in 2008 than in 2004. ]

Teamwork is the cornerstone of an effective safety culture. Even simple things — a briefing by the captain to the cabin crew or safety walks by management and union representatives — are signs of goodwill and teamwork. As part of PFS, employees focus on safety by establishing teams to investigate employee injuries, and, most importantly, identify the best preventative measures. Through this effort, teams have recommended and implemented changes that reduce injuries. Examples: • Turbulence injuries are reduced in-flight because of the efforts of a task force of flight attendants and pilots. As a result of their recommendations, turbulence safety tips are posted on the flight attendant Web site, and turbulence information is more prominently displayed on AA.com. • With the support of front-line employees, policies were strengthened to make highly visible safety vests the standard garment for any employee — or employee doing business on our behalf — who works in the airport operating area or who is involved in ramp operations. New vests are required to be brighter, more reflective, and break-away style.

25 AMR Corporation • Corporate Responsibility Report • Injuries caused by slips and falls during winter months are reduced at Chicago O’Hare by the Snow Committee. The committee keeps employee parking lots clear of snow, Improvement in Lost Work Cases Since 2004 stocks shovels, brooms and ice-melting products at gates, and installs heavy-duty rugs that provide more traction in high traffic areas. • As a result of employee feedback, initiatives have been implemented to improve 21% ergonomics for numerous work groups. Maintenance workers now have an automated solution to help them buff aircraft with reduced shoulder and back strain; flight attendants use redesigned beverage carts that are lighter and more maneuverable; 15% gate agents work with adjustable computer screens and keyboards to help reduce 14% neck and wrist strain; and airport employees avoid injuries through education and awareness of proper baggage and freight handling procedures. 11%

2005 2006 2007 2008

Participants in PFS also receive training that covers a wide range of topics — things like safety awareness, conducting safety observations, and investigating accidents to determine root causes. This training results in reduced injuries, which, in turn, reduces lost work cases (LWCs).

With PFS, we are tracking safety records, reducing medical expenses, and reducing lost time. We are achieving these successes through increased communication, awareness building, coaching and counseling leadership, training, identifying root cause relationships, eliminating hazards, and greater employee involvement. The Facilities Automotive team at Los Angeles International Airport (LAX) celebrated two years without a recordable injury. The achievement was lauded by LAX and AMR executives. “This type of triumph does not come by accident. It is achieved through hard work and being observant each and every day,” said Kevin Diamonti, managing director.

Global Community • Global Commitment 26 AMERICAN EAGLE — NORTH AMERICA’S NEIGHBORHOOD AIRLINE

At American Eagle, our mission is to connect small- and medium-sized cities to the nation’s big cities and hub airports. While safety will always be our primary focus, we take very seriously our responsibility to safeguard the environment and give back to all the communities in which we live and work.

Safety American Eagle is absolutely committed to the safety of our customers and our employees — both on the job and away from work. We have an industry- leading safety record with a lower employee injury rate than any other airline. To maintain this positive momentum and prevent accidents, Eagle recently began a companywide training effort to renew our efforts to make Eagle an even safer place to work. In just the first few months, more than 1,000 managers, union leaders and front-line employees have completed the course.

Environmental Commitment Running an airline is a complicated business involving large, sophisticated equipment, thousands of highly trained people, and the consumption of numerous petroleum products and electricity. Throughout our operation, we make conservation a priority — from water, gasoline, and electricity at the airport to the amount of jet fuel our aircraft consume in flight.

Teams of pilots, maintenance, and dispatch experts identify the most efficient routes, altitudes and speeds when developing our flight plans. Our pilots routinely taxi aircraft to the gate using only one engine. Ground employees work to meet every incoming aircraft as soon as it arrives to plug in less expensive and cleaner electric ground power, reducing jet engine operation when parked. Eagle has replaced nearly half of our gasoline-powered vehicles with battery- powered ground equipment, and has eliminated the use of buses in most locations to reduce emissions.

27 AMR Corporation • Corporate Responsibility Report Eagle employees also participate in recycling programs — both at work and in the community. We collect and recycle the majority of aluminum cans used on our aircraft. At our airports and maintenance bases, environmental coordinators ensure that we comply with all federal, state, and local regulations and apply the best practices for labeling, storing, and disposing of hazardous materials.

Eagle Receives Coveted FAA Diamond Award13

American Eagle, along with American Airlines and Texas Aero Engine Services Ltd. (TAESL), an affiliated engine repair facility, received the FAA’s Diamond Award for excellence in training Aviation Maintenance Technicians (AMTs) in late 2007.

American Eagle had one AMT, Chinyere Toddy of Springfield, Mo., qualify for the individual Diamond Award, the highest level of recognition. This award signifies that he successfully completed 100 hours of training plus college-level courses.

American Eagle qualified 770 AMTs — or 80 percent of eligible mechanics — for the honor, racking up nearly 45,000 hours of training that year.

13GRI standard disclosure 2.10

Global Community • Global Commitment 28 29 AMR Corporation • Corporate Responsibility Report Global Commitment: Focus on Environment Followers of AMR already know that this report has its roots in our 2006 environmental responsibility report.

AMR’s environmental department continues to lead the effort to prepare and publish this report annually, but it is no longer solely an environmental report. We are proud that the reporting process has evolved to include active contributors throughout the company. In the following pages, we provide environmental performance data introduced in our prior reports as a means to allow our stakeholders to track The Alliance Maintenance and Engineering Base in Fort Worth has a view of its Elizabeth Creek stormwater our performance. basin. The base has earned awards for its water management. For more, see page 37.

AMR led the industry by being the first major Compliance Reporting passenger airline to join the EPA’s Climate In the interest of transparency and disclosure, our stakeholders suggested we report the monetary value of fines levied against AMR, American and Leaders program. Eagle for environmental non-compliance. Although our goal is zero fines, in any given year some compliance events may result in enforcement action Climate Leaders is a or monetary fines. Our environmental team makes use of these events as collaboration of business feedback to improve our entire system. ® and the EPA to develop Climate Leaders comprehensive climate In 2008, American paid an environmental penalty of $22,532 as a result change strategies. Members of an administrative reporting issue related to the timeliness of employee commit to reducing their impact on the global environment by setting commuting data at Los Angeles International Airport (LAX). Appropriate ambitious greenhouse gas reduction goals to be achieved over the next action was taken to avoid a recurrence of this issue and it does not five to 10 years. Participants report their progress to the EPA annually. represent any material problem with our environmental compliance policies or procedures.14 American has committed to a 30 percent reduction in our greenhouse gas intensity ration by 2025 and will work with Climate Leaders to set a mid-range goal to help meet this long-range target. 14GRI performance indicator EN28

Global Community • Global Commitment 30 Industry Emissions Scope 2 indirect GHG emissions associated with purchased electricity. We estimate

Commercial aviation is responsible for 2 percent of global carbon dioxide (CO2) that these indirect emissions are less than 2 percent of our entire GHG inventory emissions. Of all global transportation-related emissions, 12 percent is attributed to and are not material to our operations.18 Eagle’s carbon footprint was 2.7 million 15 aviation activities, compared to 74 percent from road transport. According to data metric tons of CO2e for 2008, about 9.3 percent of AMR’s total. A full summary of published by the U.S. Department of Energy, transportation-related CO2 emissions the assumptions and calculations that comprise our GHG inventory are included as declined by 5.2 percent in 2008 — the largest annual decline since 1990.16 Our an appendix to this report. own data suggests that the economic recession played a part in this decline, but we also believe emissions reduction efforts like ours had a role in the reported decline. In order to compare GHG emissions to production, we continue to calculate an AMR is proud to see our efforts and those of our industry peers yielding measurable intensity ratio by dividing our absolute emissions by the revenue ton miles we results. produced. This compares the amount of CO2e we emitted with the work we performed (as measured by the weight of passengers and cargo we were paid to • GHG Policy and Management Plan transport). It does not account for empty seats on an aircraft. As a result, even though AMR is committed to reducing future GHG emissions within the constraints of we continue to implement our Fuel Smart initiatives, reduced passenger and cargo providing, safe, reliable, and affordable transportation for customers. traffic resulting from a declining economy in 2008 resulted in an increase in the calculated intensity ratio. There are no environmental regulations requiring AMR to report or reduce aircraft GHG emissions in Total AMR GHG Emissions the United States; however, legislation was brought before Congress in early 2009. Until specific legislation is enacted, AMR is committed to voluntary 32.0 2.50 2.25 reporting of GHG emissions using current, industry- 31.5 2.19 2.14 2.08 accepted standards and practices. 1.97 2.00 31.0 1.85 1.79 1.79 1.79

30.5 e/1000

• GHG Inventory Results 2

(millions) 1.50 30.0 AMR emitted 29.1 million metric tons of CO2e in 17 2008. This includes both Scope 1 direct and 29.5 1.00 29.0 Revenue Ton Miles Ton Revenue

Metric Tons Tons Metric 28.5 0.50 CO Tons Metric 28.0 15http://www.iata.org/whatwedo/environment/climate_change.htm 27.5 0.00 16http://www.eia.doe.gov/oiaf/1605/flash/flash.

html?featureclicked=1& 2000 2001 2002 2003 2004 2005 2006 2007 2008

17GRI performance indicator EN16

18GRI reporting initiative EN17 Total Scope 1 and 2 GHG Emissions (Carbon Dioxide Equivalent) Intensity Ratio

31 AMR Corporation • Corporate Responsibility Report Our GHG emissions are directly related to the combustion of jet fuel in the turbines of our aircraft. No other factor in our operations has such great effect on our Resource Conservation these resources responsibly. Our commitment

Emissions GHG inventory. In this section we present scorecards to highlight includes efforts to reduce the use of resources our key inputs including materials, energy, and and reclaim spent resources in all areas of water. While we can only reduce these items a operation, from the office to the airport to the In 2007, we established a long-term goal finite amount, we are committed to managing maintenance base to on-board our aircraft. of increasing our fuel efficiency by 30 percent between 2005 and 2025. We Energy remain committed to this goal despite the • Energy Used difficult times that AMR and the rest of the Jet fuel represents the single largest source of direct energy in all of our operations. Although we use refined airline industry are enduring. petroleum products in many of our ground service equipment engines, turbine engine test cells, electricity generation and comfort heating all of these sources are less than ½ of 1 percent of the fuel we consume each After three years, our efficiency improved year and do not represent a material source of direct energy from fuel. 3.2 percent.19 Our Fuel Smart program 20 continues to identify new fuel-saving Jet Fuel Used (billions of gallons) opportunities that will help us become more efficient. Fuel Smart set a goal 2000 of implementing initiatives that save an additional 9 million gallons of fuel annually 2001

by the end of 2009. 2002

2003 In addition, our narrow-body fleet replacement program began in 2009 with 2004 the delivery of new Boeing 737s that will 2005 replace less efficient MD80s. In coming 2006 years, we will take delivery of 42 Boeing 787 Dreamliners, which are the most 2007 efficient aircraft of that size, with options to 2008 purchase an additional 58 787s. 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4

19 GRI performance indicator EN18 20GRI performance indicator EN3

Global Community • Global Commitment 32 21 Non-Fuel Energy Sources (thousands)

Energy Source 2006 2007 2008 Natural Gas (therms) 15,846 15,952 19,331 Electricity (KWH) 631 649 649

• Energy Reduction/Conservation Efforts22 Our Fuel Smart team and Utility Management Council, first introduced in our 2007 ERR, continue to seek new ways to conserve energy. In last year’s report, we provided detailed descriptions of many Fuel Smart programs. We are happy to report that this program has matured into a steady source of fuel savings initiatives that in 2008 resulted in a reduction of 111 million gallons of fuel that would have been combusted if these initiatives were not in place. Our goal is to increase this to 120 million gallons by the end of 2009.

In last year’s ERR, we provided detailed Run-Rate Fuel Savings (millions) fleet renewal plans as part of our long- 120 term strategy to reduce fuel consumption 111 and lower operating costs. These efforts have been bolstered by the mid-2009 100 announcement of an order for eight more 96 95 Boeing 737-800 aircraft, scheduled for 84 delivery beginning in 2011, in additional to 80 the 76 aircraft that will be delivered in 2009 and 2010.

60

48 21GRI performance indicator EN4 22GRI performance indicator EN5 and EN18 2004 2005 2006 2007 2008

33 AMR Corporation • Corporate Responsibility Report Further commitment to our fleet renewal strategy Since we began tracking their success stories in • A DFW cargo building roof replacement with a is evident in our announcement in late 2008 of 2005, our Utility Management Council’s efforts lighter-colored material that absorbs less heat our intent to acquire 42 Boeing 787-9 Dreamliner resulted in an annual savings of more than $2.3 and helps reduce cooling costs aircraft, expected to be delivered in late 2013, million of direct energy that would otherwise have • Turn-off of vending machine lights at our with the right to purchase up to 58 additional been purchased and used.23 In 2008, some of their headquarters to reduce electricity consumption 787s expected to be available beginning in 2016, efforts included: • An upgraded air conditioning system to cool subject to scheduling updates from Boeing. This • Lighting technology upgrades at various locations jet bridges and aircraft at DFW gates reduces next-generation aircraft features the latest in engine • A new boiler water treatment system installed at electricity consumption and cools aircraft cabins design and use of composite materials that will our Tulsa maintenance base, which had a one-year without the use of aircraft engines help in our efforts to lower fuel consumption and payback emissions.

Lower Weight = Less Fuel Burn American is putting its aircraft on a diet. As part of unnecessary items in the cabin like razor outlets and a conservative buffer to the water quantity from the continuing efforts to reduce rising fuel costs, reducing extra magazine racks, employees in departments across surveys, American significantly reduced the amount the operating empty weight of each aircraft, as American are evaluating and taking action on a range of of potable water carried on 777, 767, 757 and Emissions well as the weight of all that is carried onboard the aircraft weight-reduction initiatives. In fact, American will MD80 aircraft. These potable water reductions aircraft, in turn reduces the amount of fuel required save more than $31 million per year in fuel costs alone translate into 2.5 million gallons of fuel to fly and taxi the aircraft. as a result of aircraft weight reductions accomplished saved per year. or in progress. American’s Fuel Smart team has worked closely American also is removing partition walls, wiring, with employees to gather and implement fuel-saving One important way to reduce the weight carried on phones, tray tables and ovens. For example, the ideas while balancing the needs of passengers, crew aircraft is to eliminate excessive and unused amounts removal of the 767-300 mid-galley oven eliminated members, and on-time performance. of potable water. The water is necessary to make coffee 235 pounds of excess weight. Another completed and tea, and for lavatory sinks. Survey analysis of potable initiative is the replacement of all passenger life vests. From replacing the cargo compartment lining with water used on various fleet types was compared to the The new models are a half-pound lighter each, more durable, light-weight material to removing capacity of each aircraft fleet type. Even after applying saving close to 760,000 gallons of fuel annually.

23GRI performance indicator EN5

Global Community • Global Commitment 34 as a cell phone or Blackberry. Following Future Fuels24 Materials • Materials Used Chicago O’Hare, we launched the same As part of our energy score card earlier in this service at Las Vegas and Orange County, AMR actively participates in industry report, we reference the fact that jet fuel is the Calif. More stations will come online in 2009. efforts to promote environmentally friendly single largest source of direct energy. It is also This enhancement also improves security and alternative fuels. We continue to work with the largest material we purchase (by weight reduces congestion at airport ticket counters. the Commercial Aviation Alternative Fuels

Future Fuels and volume) to conduct our normal business Initiative (CAAFI), which is a consortium operations. An accurate assessment of ancillary - E-Freight of airlines, government agencies, materials we purchase as a normal part of our American’s Cargo Division (AA Cargo) manufacturers, airports, and current and business can be obtained from the inventory of launched a domestic e-freight initiative to prospective fuel suppliers. our wastes, presented in the Waste Minimization support a move toward paperless shipments. section.25 The initiative is facilitated by the International Part of the challenge of developing Air Transport Association (IATA). By adopting alternative fuels is to produce a fuel that can • Material Reduction/Conservation Efforts e-freight, we have effectively eliminated be “dropped-in” to the fuel supply chain so We continue to depend on paper in our daily the need to send 12 paper documents that it is interchangeable with existing jet operations, but we are trying to reduce or with air cargo shipments, which streamlines fuel. This means the fuel will have to meet eliminate it from many of our processes. We processes, improves speed and reliability, and rigorous standards to ensure that safety have eliminated paper ticket jackets and are cuts costs. and aircraft engine operations are in no way saving 500,000 pounds of paper on this adversely affected. It also means the fuel initiative alone. We have also established The first use of the new system began will have to be approved by the appropriate an online community for internal sharing of between New York John F. Kennedy and standards-making organization. important operations documents using Microsoft London Heathrow airports. Further expansion SharePoint. Several other exciting examples of into other routes is planned and will be Despite this challenge, the rewards for our paperless successes: launched at additional major U.S. airports. developing commercially viable alternative fuels will be great. By using biomass as - Paperless Check-In E-freight requires that business, technical, and the feedstock, these fuels can significantly In November 2008, AMR began testing a legal frameworks be in place to allow airlines, decrease the environmental footprint of mobile boarding pass system at Chicago freight forwarders, customs administrations, aviation. In addition, alternative fuels can help O’Hare. Passengers can check in for their and governments to seamlessly exchange promote energy independence, stabilize fuel flight, go through security and board an electronic information and e-documents prices, and create more jobs for the economy. aircraft using any Web-enabled device such instead of paper. 24GRI performance indicator EN6 25GRI performance indicator EN1 35 AMR Corporation • Corporate Responsibility Report “The U.S. launch of the e-freight initiative brings - Portable Laptops for Aircraft Mechanics us one step closer to a completely paperless Mechanics who overhaul aircraft now have environment,” said Dave Brooks, president of laptops that provide real-time access to aircraft AA Cargo. “The improvement in data quality manuals. Previously, mechanics had to print and timeliness of information will increase the the necessary sections of the manual — some speed of our interactions, yielding more efficient of which could be as long as 100 pages — commerce for all of us in the air cargo industry.” before each assignment.

For more information, visit www.aacargo.com. - Electronic Parts Management Our new parts tracking system eliminates the - RampLink printing of tracking documents every time a Introduced in our 2007 report, this technology part is ordered. This means that approximately allows ramp crew chiefs to enter data quickly, 700,000 fewer documents will be printed saving fuel by reducing delays, and eliminates each year. Our new parts procurement system the need to print flight records. The handheld is used to order many parts electronically, devices, which provide real-time feedback on - Special Identification for Law eliminating the printing and mailing of purchase flight-critical information and use bar code Enforcement orders. Suppliers can also use the system to scanning on cargo containers, have been This new program eliminates the need for electronically send invoices, further reducing expanded to more stations. triplicate forms when law enforcement personnel paper use. travel with firearms on aircraft. Instead, the - T-Link information is printed on a boarding pass stub. - Thin-Gauge Paper Stock Crew chiefs used to print routing sheets for bag American Way, our in-flight magazine, now is tug drivers so they knew which aircraft to deliver - Online Office Supply Catalog printed on thinner paper, reducing consumption bags to. Now, a computer on bag tugs displays AA Purchasing has teamed with office supply by more than 10 percent. At airports, we are the information. In addition to saving paper, this giant Staples® to offer SmAArtBuy users an replacing boarding passes with thinner gauge optimizes the drivers’ routing and also provides online version of their catalog. This eco-friendly paper that reduces paper consumption by 30 up-to-the-minute aircraft arrival and departure initiative eliminates 1,800 paper catalogs. The percent. information, reducing the number of bags that online catalog is easy to use and includes nearly are misconnected. Paired with RampLink, T-Link all items from the print version. is moving us toward a paperless ramp.

Global Community • Global Commitment 36 Noise Like all airlines, we operate in widely dispersed facilities, both owned and We recognize that noise is an important, localized concern for the communities near the leased. At many locations, certain services are bundled as part of our airports we serve. In part, the answer to achieving greater noise reductions is continued fleet leaseholds. One such service is water supply. As such, we do not have renewal efforts introduced in our 2007 ERR. New aircraft continue to be quieter than their metered water discharge at many of our locations and cannot report accurate predecessors. As such, as we continue to place orders for and take deliveries of Boeing data for these activities; however, we can and do track water use/discharge at 737 and 787 aircraft, we continue to achieve noise reductions associated with our fleet. Our major facilities, including our headquarters and maintenance bases. 26 efforts to equip aircraft with winglets also reduce aircraft noise. The approximately 7 percent increase in water use during 2008 was a result Water of an outage of our reverse osmosis (RO) system at our Alliance Maintenance • Water Use and Engineering Base, known as AFW. As a result of this outage we had to Water is not a material input for any of AMR’s operations, and we do not plan to calculate buy make-up water for several months. Under normal operating conditions, a water footprint of our operations. However, we believe water will be a major part of we are able to recycle a large portion of the water used at this base through 27 future sustainability and corporate responsibility reporting frameworks. We are presenting a the RO system. The RO membranes were replaced in December 2008, and scorecard dedicated to water use that can be expanded as necessary. we expect to show a corresponding decrease in water use in 2009.

• Water Use Reduction or Reclamation Average Margin Between AMR Aircraft Noise Level Our water use represents a small fraction of the water used in each of the and Regulatory Minimums markets for which we have data. We do not believe our operations have a material impact on the local water sources from which it is collected. Regardless, as a matter of good stewardship, we make efforts to reduce our water consumption and/or reclaim recovered wastewater, where practical.

2005 -3.72 In 2008, AMR was awarded the U.S. Environmental Protection Agency’s 2008 Water Efficiency Leadership Award for our role in sustainable irrigation 2006 -3.78 water management at our headquarters. Our Kansas City, Mo., maintenance base was awarded the Gold Award Certificate for pretreatment by the Missouri 2007 -3.76 Water Environment Association Industrial Waste Committee. Again the AFW water treatment plant was awarded the Pretreatment Associate 2008 -3.81 Award. The award recognizes American for full compliance with local, state, and federal water quality regulations. Winning the award is no easy task, -8 -6 -4 -2 0 as AFW treated nearly 17 million gallons of water in 2006. AFW’s reverse osmosis system also allows AFW to recycle about 30 percent of its water intake and use the recycled water for aircraft washing and other maintenance 26 GRI performance indicators EN21 and EN8 work, saving thousands of gallons of water and thousands of dollars. 27GRI performance indicator EN10

37 AMR Corporation • Corporate Responsibility Report Non-GHG Emissions28 AMRs operations do result in emissions of some regulated air pollutants that the Clean Air Act. We do report non-transportation air emissions for our maintenance are not GHG emissions. Our regulated emission sources: bases and select airports. • Combustion of jet fuel in aircraft • Jet fuel combustion at test cells Ozone Depleting Substances29 • Fuel combustion for on-site electric generation, steam generation, and In 2007, we began reporting our use of ozone-depleting substances (ODS). Most of comfort heating the ODSs we use are Class 2 materials as defined by the Clean Air Act. Halon, used • Fuel combustion in company-owned vehicles and ground support in FAA-certified fire extinguishers, remains our sole Class 1 ODS. This material will equipment be phased out with our fleet renewal efforts, so we do not have a need to address • Process (painting and cleaning) emissions at maintenance bases reduction of Class 1 ODSs. Industry suppliers are working to develop and certify FAA- approved alternatives to the popular Class 2 ODS solvent dichlorofluoroethane (HCFC- The vast majority of nitrous oxide (NO ), carbon monoxide (CO), sulfur dioxide x 141b). HCFC refers to hydrochlorofluorocarbons, which are no longer made, but are (SO ) and 10 micrometer or smaller particulate matter (PM ) emissions are 2 10 still legal to use and are required to be used in many circumstances by current FAA associated with jet fuel combustion in aircraft. Generally, we are not required rules. HCFC-141b represents approximately 96 percent of the Class 2 ODSs we use. to report transportation-related emissions to state or local air agencies under

Total Estimated Water Use/Discharge at Major AMR Facilities

In 2008, AMR was awarded the U.S. Environmental 2005 533.3 Protection Agency’s 2008 Water Efficiency Leadership 2006 554.6 Award for our role in Water sources from sustainable irrigation local public water 2007 water management 556.7 at our headquarters. [ ] 2008 594.8 500 510 520 530 540 550 560 570 580 590 600 28 GRI performance indicators EN20 gallons (millions) 29GRI performance indicator EN19

Global Community • Global Commitment 38 Ozone Depleting Substances (pounds)

2005 810810 37,82237,822

2006 521521 37,02637,026

2007 1,6421,642 30,55430,554 Class 1 ODSs 2008 2,0862,086 30,45830,458 Class 2 ODSs

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

In 2007, we began reporting our use of ozone-depleting substances (ODS). Most of the ODSs we use are Class 2 materials as defined by [ the Clean Air Act. ]

39 AMR Corporation • Corporate Responsibility Report Waste Minimization AMR is committed to recycling materials where practical, promoting employee awareness, and empowering employees to identify additional ways to conserve the resources used to conduct our business. Regular publication of our waste minimization performance data in our CRRs help achieve this goal.

Environmental Coordinator — A Key Strategy for Realizing Our Commitment to the Environment

On Earth Day, the Philadelphia International Airport recognized a group leading waterfowl and wetlands conservation entity in North America. Their chapter of American employees for their efforts to improve and safeguard the watches over the 1,000-acre John Heinz National Wildlife Refuge, which borders environment through their role as environmental coordinators (ECs). Bert the airport. It is the largest fresh-water tidal marsh in Pennsylvania, serves as a key Elliott, ramp crew chief and lead EC who accepted the award, was quick to stop in the Atlantic flyway, and is a nesting place for more than 80 species of birds Environment share the accolades with his colleagues and fellow ECs. and waterfowl.

“It’s all about making a better future for our families and those we care about,” Elliott said. “The airport operator at Philadelphia wants to go green, and we want to help.”

Elliott was quick to point out that this was a group effort and deserved group recognition for the whole American environmental team — Stacy McLaughlin, John Breeden, Michael T. Etling, Raphael Jackson, Jill Johnson, and Ann Mie Czop-Rillaerts.. Third-party recognition is a source of pride for us. The opinions of people outside our organization add credibility and validate our cause.

Environmental Leadership The Philadelphia airport authority recognized two American fleet service clerks out of thousands of employees for their environmental leadership. American’s Craig Dumont shared honors with his brother Tim, a ramp clerk with another airline, for their leadership roles in Ducks Unlimited, the The Philadelphia environmental team was honored by the airport for ongoing efforts to improve and safeguard the environment through their work.

Global Community • Global Commitment 40 Fuel is and will continue to be the most intensely used material in our operations; however, many other material resources are used in our work flow. Where possible, the resulting spent products are reclaimed or recycled. Here is a summary of the wastes generated and materials recycled:

30 Hazardous / Non-Hazardous Waste Generated by Type (pounds)

Location 2004 2005 2006 2007 2008

American Operations 115,341 265,706 265,333 189,284 123,144

Eagle Operations 145,803 227,613 146,951 184,580 143,066

Operations Subtotal 261,144 493,319 412,284 373,864 266,210

Hazardous Maintenance Bases 2,594,686 1,775,267 1,690,624 2,169,433 1,722,598

Operations and Bases Subtotal 2,855,830 2,268,586 2,102,908 2,543,297 1,988,808 30GRI performance indicator EN22 and EN24 American Operations 661,585 488,344 640,477 1,301,92431 1,763,386 31Now includes Anything That Tears, 524,000 Eagle Operations 214,445 158,761 139,475 236,617 253,364 pounds, previously reported at 777,924 pounds.

Operations Subtotal 876,030 647,105 779,952 1,538,541 2,016,750 32 Now includes SOS Metal Recycling, 966,155 pounds, previously reported at 32 Maintenance Bases 1,542,783 1,810,746 794,452 2,074,750 2,542,092 1,108,615 pounds. Non-Hazardous

Operations and Bases 33Updated for 2008 report; first year to Subtotal 2,418,813 2,457,851 1,574,404 3,613,291 4,558,842 include both Anything That Tears and TOTAL 5,274,643 4,726,437 3,677,312 6,156,58833 6,547,650 SOS Metal Recycling numbers; recycling numbers added for 2008 report, previous total was 4,666,453 pounds.

41 AMR Corporation • Corporate Responsibility Report 2008 Material (total pounds) AMR’s environmental policy was presented in detail in our 2007 ERR Petroleum and other high BTU chemicals sent 968,330 and is available online at http://www.aa.com/content/images/amrcorp/ for fuel blending, energy recovery, incineration, amrerr.pdf. AMR has continued to implement that policy in 2008 and or other disposal methods. looks forward to its success in 2009 and beyond. Used oil, absorbents and fi lters 484,192 Metal spray and blast media 286,557 The managing director of Corporate Environmental reports directly to Empty drums and cans – poly and metal 73,525 the vice president of Safety, Security and Environment, who reports

Solutions, inorganic chemicals, sludge 1,204,914 Environmental Policy annually to the board. Administratively, this vice president reports directly and debris to AMR’s executive vice president of operations who, in turn, reports Lamps and ballasts 57,842 directly to CEO Gerard Arpey. Batteries 9,873 Miscellaneous hazardous and non-hazardous 1,405,058 materials, wastewater sludge, soils, and debris Rinsate water 19,694 Antifreeze 57,369 Oxygen generators 14,061 Electronics, computers and related 45,885 Miscellaneous recycled material 1,914,981 Other miscellaneous material 5,369

Total 6,547,650

Global Community • Global Commitment 42 2008 Disposal Summary for Airport Operations (pounds)

17,915 Aqueous 4,119

72,281 Landfill 261,110 Non-Hazardous 204,654 Incineration Hazardous 64,446

355,703 Energy 182,630

925,390 Recycling 6,688

0 200,000 400,000 600,000 800,000 1 million

2008 Disposal Summary for Maintenance Bases (pounds)

26,249 Aqueous 843,760

9,425 Landfill 437,634 Non-Hazardous 4,401 Incineration Hazardous 40,065

355,703 Energy 458,630

2,073,380 Recycling 15,443

0 200,000 400,000 600,000 800,000 2 million

43 AMR Corporation • Corporate Responsibility Report CAN IN-FLIGHT RECYCLING SAVE AN ENDANGERED SPECIES? Our flight attendants recycle more than 10 million aluminum cans each year through their in-flight efforts. Heather Bell is a former flight attendant for American. Thanks to the interests of Heather and her fellow flight attendants, the endangered Tennessee purple coneflower is proposed for delisting from the endangered species list due to recovery — a rare event.

While American’s flight attendants were not solely responsible for this success, past donations from American’s flight attendant recycling program supported The Nature Conservancy’s (TNC) purchase of property to protect this flower. The recovery efforts of TNC and others funded by donors like American’s flight have made it possible for this flower to be considered for removal from the endangered species list.

Heather is now a natural resource specialist with the U.S. Fish and Wildlife Service, the agency responsible for the listing and recovery of endangered species, and was proud to share the news with her former peers. We thought this news would be equally interesting to readers of our CRR. American’s flight attendants continue their philanthropic traditions today. AMR is proud of the results they achieve and thanks each of them for their continued interest and effort.

Global Community • Global Commitment 44 UNICEF For the World’s Children American has a soft spot for children. Whether it’s bringing them financial resources to live or bringing them to the “happiest place on Earth,” children are a priority.

Through two programs in 2008, American made life a little sweeter for the world’s youngest population.

American employees and customers raised nearly $770,000 for UNICEF through the Change for Good program, a partnership between UNICEF and international airlines. That brings American’s running total donation to more than $2.8 million.

Since 1994, American has been the participating airline partner in the United States. The program was established in 1987 and is one of UNICEF’s best-known and longest-running partnerships. Twelve international airlines participate.

The Change for Good program is supported by Airline Ambassadors International (AAI), a humanitarian organization founded by American Airlines flight attendants. AAI leads the effort to recruit “Champions for Children,” volunteer flight attendants who make the program happen, encouraging passengers to get involved and collecting on American flights.

For more information, visit www.aa.com/unicef and www.airlineamb.org.

45 AMR Corporation • Corporate Responsibility Report American Cancer Society

A Spirited Hero, Leading the Fight Against Cancer That hero is Mary Beth Reddell, who was named an American Courage like that is contagious, and her co-workers quickly felt the vibe. Cancer Society Hero of Hope in Next thing she knew, her department had formed a Relay For Life team and 2006. Reddell, a senior analyst raised $25,000. The next year, she took up the Relay For Life cause herself in regulatory complaince for and raised an amazing $90,000. American Airlines, has been fighting colon cancer for several Unfortunately after a year’s hiatus from cancer, it returned. More surgery, years. It started with symptoms chemo, and 12 additional treatments followed. Nevertheless, in 2006 her doctor could not identify. she worked with relay teams across the American system to help raise a Reddell self-diagnosed the whopping $417,000. disease, then surgery revealed Mary Beth Reddell, Hero of Hope. a grim situation: a tumor on her In January 2008, Reddell underwent surgery to remove her spleen. Yet she liver and cancerous cells in her keeps defying the odds. “I just let God handle all my cancer stuff,” The only abdominal tissue. thing you can control is your attitude, so I focus on that.”

“My doctor looked straight at me and said, ‘You know there’s no cure,’” she said. “That really ticked me off. I thought, ‘You don’t know who you’re dealing with.’”

A few months into treatment, it became clear just how difficult fighting the cancer would be, but Reddell was up to the challenge. “I thought to myself, ‘This is going to be bad, but I can handle it. But there are going to be a lot of people looking at me. I need to decide how I’m going to do this,’” she recalls.

Fellow Hero Bettina Wade with Reddell at Relay event.

Global Community • Global Commitment 46 47 AMR Corporation • Corporate Responsibility Report Global Commitment: Focus on Employees In 2008, AMR had 84,100 employees. Approximately 74 percent of American employees and 67 percent of Eagle employees were represented by labor unions.34 The remaining employees include management and non-management employees. Approximately 78,000 employees worked in North America, with the remaining employees stationed throughout the world.

Pay and Benefits35 Around the globe and across job categories, from pilots to ramp workers, flight attendants to maintenance technicians and customer-service providers, American provides superior wages and benefits — at or near the top of the airline industry — and almost always well above the U.S. average. In 2008, AMR paid nearly $6.7 billion in direct wages and benefits.36 We provide a comprehensive package of health and life benefits for employees and their families; these can be tailored to individual needs, require relatively small employee contributions, and extend to domestic partners. For more information on how American’s compensation and benefits policies compare to other airlines, go to http://www.aanegotiations.com/business.asp.

Caribbean and 34 GRI performance indicator LA4 North America Latin America Europe Asia 35GRI performance indicators LA3 and EC3 36GRI performance indicators EC1 (2.1c) Salary and Benefi ts $6,450.4 million $107.2 million $84.9 million $10.0 million

Global Community • Global Commitment 48

Salary and Continent benefi ts (mil)

North America $7,254.9

Latin America $140.5 and Carribean

Europe $84.9

Asia $10.0 Employees, families, and even their friends enjoy the ability to travel worldwide at The company’s commitment remains. Despite a challenging year in 2008, vastly reduced fares on American and Eagle, and on dozens of other airlines that AMR continues to fund its defined-benefit pension plan and continues to match offer reciprocal privileges. Many hotels, cruise lines, and rental car companies offer employee 401K programs. Most importantly, under the Pension Protection Act substantial discounts to our team members. For more than 70 years we have funding provisions, our pension plans remained more than 80 percent funded at operated a member-owned credit union, a cooperative “bank” that pays savings the beginning of 2009, and we do not anticipate benefit restrictions in 2009. rates above those that commercial banks provide, provides loans at below-average rates, and offers a range of financial planning and credit counseling services. In addition to the pension benefits we provide, retirees who have achieved specified ages and years of service continue to enjoy subsidized health • Retirement Benefits insurance for themselves and their family, can purchase a range of other health Since the beginning of 2002, American has funded more than $2 billion to our and welfare coverages, and have access to travel privileges on American, Eagle, pension trust funds and another $1 billion to other defined contribution programs and many other airlines. for our employees. For this, PLANSPONSOR magazine named American Sponsor of the Year for its ongoing strategic approach and unwavering commitment to retirement plans for approximately 133,000 participants.

49 AMR Corporation • Corporate Responsibility Report • Development and Retention37 We value the deep experience of the AMR team. Employees with more than 15 years of employment with the company make up 59 percent of our workforce. Over the past four years, our employee turnover rate has ranged from 8 percent to 11 percent, substantially below the overall U.S. turnover rate of 21.6 percent in 2008.38 These numbers include voluntary and non-voluntary turnover, as well as retirements.

We have a long and successful history of growing our own talent and are committed to providing career opportunities to employees so they have the opportunity to reach their professional and personal goals. In 2008, 82 percent of management position openings were filled by internal candidates.

By treating employees fairly across the globe and providing the necessary training, we know we are advancing the future success of our airline. We also encourage and allow our people to make a difference in meaningful, non-work-related areas as part of their career with us. Many success stories appear throughout this report. We hope they will inspire you to action, too.

37GRI performance indicator LA2

38http://www.bls.gov/jlt

Global Community • Global Commitment 50 AA GOES PINK

American and Eagle have taken their commitment to supporting cancer research to new heights.

Strengthening our already long-standing partnership with Susan G. Komen for the Cure, in August 2008, American and Eagle became Komen’s inaugural Lifetime Promise Partner. We have pledged to raise at least $1 million each year for eight years for the organization in support of the new Promise Grant program.

“Nearly everyone at (American) and Eagle has been affected (by cancer), either personally or through a friend or family member,” says Bernie Willett, AMR director of cause-related marketing. “Hundreds of employees turned out for the launch of the 757, 777, and Embraer aircraft on which the Komen pink ribbon has been painted, and thousands more have been active in the Race for the Cure and other Komen fundraisers. Our people are deeply committed to this cause.”

The 2008 first Promise Grant recipient is the University of Texas M.D. Anderson Cancer Center in Houston. The funding will help research aimed at earlier detection of inflammatory breast cancer, the most lethal and underfunded form of the disease. American’s annual celebrity golf and tennis event will be the primary source to fund the grant. Customers also can donate through the Miles for the Cure program. We’ve already seen a tremendous response, with more than 6,500 AAdvantage program members contributing more than $600,000. A pink ribbon livery on the tail and fuselage of eight American and Eagle aircraft is “The iconic Komen pink ribbon decal on eight of our planes will help a visible sign of AMR’s commitment to supporting cancer research. increase visibility of this cause,” Willett says. “And this historic partnership will serve to strengthen our brand around the world and in the communities we serve.”

51 AMR Corporation • Corporate Responsibility Report Komen Relay for Life Photos and Photo of Komen AA Plane:

Eagle Soars to Help Fund a Cure In 2008, American Eagle unveiled a special new livery that will ultimately “It was a wonderful — and often emotional — day,” said Dan Heath, Eagle adorn six Embraer-145 aircraft and two American jets — a distinctive pink marketing director and champion of the livery concept from the beginning. “This ribbon that is the instantly recognizable symbol for Susan G. Komen for the disease touches so many lives. Many of the volunteers have a history of breast Cure®. Applied with care and precision by a team of volunteers at Eagle cancer or are currently fighting it.” Aviation Services Inc. (EASI) in Abilene, Texas, the ribbon extends 83 feet along the fuselage and up 13 feet onto the tail. “I couldn’t sleep last night, I was so excited to see our plane with the Komen livery,” said Melvina Thormeyer, Eagle records clerk in Abilene, Texas, and breast “The men and women of Eagle Aviation Services did a terrific job of turning cancer survivor. “It will help get out the message about breast cancer to our an idea into reality,” said David Campbell, senior vice president of technical customers and my fellow employees. I am very proud of Eagle.” operations. “When we approached maintenance director Harley Hall and his team with the concept, they couldn’t have been more supportive.” There are many ways to participate: • Visit www.aa.com/komen. With your AAdvantage number and a When the call went out for volunteers to help ready the aircraft and apply the minimum $25 donation, earn five miles for every dollar you donate. pink ribbon decal, the response was immediate and overwhelming. Nearly 40 employees — many of whom brought family members or loved ones — • Visit www.komen.org/donation. Select from several donation methods. turned out over the weekend for the special livery application. The community supported the effort, as well. A local Boy Scout troop volunteered time to cook • Participate in the annual Susan G. Komen Race for the Cure. Go to lunch for everyone at the hangar. The City of Abilene also donated equipment www.nationalraceforthecure.org to start a team, join one, or register as for the inaugural ceremony. an individual.

Global Community • Global Commitment 52 53 AMR Corporation • Corporate Responsibility Report Global Commitment: Focus on Diversity

Diversity and Inclusion — A Business Imperative As a global airline, we are in constant competition to earn the business and loyalty of every customer. To succeed in today’s marketplace, it is imperative that we embrace the ever-increasing diversity of our own team and the world around us. We work hard to create an environment where people feel empowered to contribute their unique talents, perspectives and ideas to the business every day.

American has made a long-term commitment to diversity and inclusion, and that commitment does not fluctuate with the ups and downs of the economy. We promote diversity, not just in how we look, but also by encouraging diversity of thought. Thought leadership yields benefits to all stakeholders — employees, customers, suppliers, communities, and shareholders.

Commitment to Diversity Ensuring a safe and respectful workplace that values diversity and inclusion requires more than just commitment. It requires an infrastructure to support it over the long term. At American, this infrastructure includes: • A diversity committee of the board of directors that oversees American’s diversity and inclusion strategies and priorities. • Meaningful and measurable diversity and inclusion objectives. These objectives include hiring, promotion and retention of women and minorities, employee involvement and recognition, diverse supplier spending goals, diverse segment marketing, and community involvement. • Dedicated teams in diversity strategies, supplier diversity, diverse segment marketing, and specialty sales, all working together to maximize their value and impact. • Sixteen Employee Resource Groups (ERGs), each with executive-level sponsorship. They bring their ideas and perspectives to bear in support of the business and in reaching out to communities.

Global Community • Global Commitment 54 • A Diversity Advisory Council with two representatives from each ERG. It meets Workforce Diversity bimonthly to collaborate in supporting business strategies and to act as a sounding Overall, AMR’s employee base reflects the changing demographics of the United board for policy and product changes. States and all the countries in which we operate. Of our U.S.-based employees, 40 • A companywide network of more than 600 workplace advocates who have percent are women and 32 percent are ethnic minorities. The racial/ethnic makeup volunteered and are trained to promote a positive and respectful work environment. of our workforce generally reflects current U.S. demographics. • Long-term partnerships with key external advocacy organizations. Female and minority representation among mid- and upper management (the top 2 percent of the corporation) has improved significantly over the past decade, despite a reduction of management employee numbers by half during this same timeframe. This progress has been achieved through development, promotion and retention of people within the airline. We have a long and proud history of growing our own leaders at American.

Female and Minority Representation Among Top 2 Percent of AMR Management

10% Minorities 1996 24% 2008

21% Female 28%

0% 5% 10% 15% 20% 25% 30%

55 AMR Corporation • Corporate Responsibility Report The Developing Role of ERGs In 2008, following the lead of existing AMR ERGs, two additional American’s 16 ERGs represent the diverse communities of interest within our employee groups successfully launched their own networks. company. Each ERG has its own mission and bylaws, but they share a common purpose: to contribute to the growth and success of individual members and Generation Now (Gen Now) ERG the company. The first ERG was formed in 1994, and the two newest groups Diversity With four generations of employees in the workplace, amid different work (Generation Now and our Veterans/Military ERG) were formed in 2008. In addition styles and expectations, the Gen Now ERG formed to focus on the needs to the growth in the overall number of ERGs, American experienced a 43 percent of employees beginning their careers, bringing fresh, new perspectives increase in ERG membership and a 40 percent boost in the number of chapters on business challenges and opportunities. The members of Gen Now in 2008 compared with 2007. help each other navigate the corporate world, leverage their networking acumen, and actively support AMR initiatives to attract and retain top Initially, our ERGs were internally focused, promoting policy and work environment talent. improvements. However, the role of ERGs has evolved. Today, they are involved in contributing to many aspects of the business — from providing input into the Veteran Military ERG (VMERG) products and services needed for new international routes to conducting focus groups to identify new opportunities to improve the company’s marketing efforts VMERG is AMR’s newest Employee Resource and customer experience. In addition, as companies face the realities of having Group. At the heart of this group’s formation four generations in the workplace and the impact of technology on our work, is a passion for causes associated with the ERGs bring valuable insight and understanding into how people of different veterans, active duty military and their loved generations can learn from each other and work together better. ones. With so many veterans, reservists and family members of active duty military among the people of AMR, the excitement for this ERG took off and membership quickly grew. VMERG is expected to become one of the largest groups, as membership is not limited to military veterans, but includes anyone interested in understanding and supporting their roles Employee Resource Groups at AMR, now and contributions. numbering 16, cover a broad range of interests and contribute to many aspects These two ERGs follow in the successful footsteps of the groups that of the AMR culture, from business input to employee events. The Åsian-Pacific Islander came before them and serve as models of achievement. ERG, for example, led a celebration of the Chinese New Year.

Global Community • Global Commitment 56 Leaders and members of our ERGs contribute significantly to American’s profile and Diverse Segment and Women’s Marketing: involvement in the community, acting as passionate ambassadors for our diversity, At a Glance marketing, and philanthropic initiatives. Diversity Marketing/Sales Diversity’s Impact on Other Areas of the Business • Diverse segment and women’s marketing teams • Supplier Diversity and the Impact of Women- and • In-language advertising, promotions and communications Minority-Owned Businesses • International and in-language Web presence The importance of small- and medium-sized businesses to the U.S. economy • Diverse segment and women’s Web presence is well-documented. Women- and minority-owned businesses are among the fastest growing segments of the economy. They are important to American, Deliver Travel Product/Service both as customers and as suppliers. Investing in the growth of entrepreneurial, • Worldwide route network and Admirals Clubs minority- and women-owned businesses in our major locations is important for • Multi-language personnel in reservations, at the airport, on-board our communities, for building mutually beneficial business relationships, and for the the aircraft, and in Admirals Clubs environment. • In-language airport signage • In-language in-flight entertainment As an airline, American is an economic engine that fuels economies around the world, and it is our responsibility to extend the opportunity for women- and Loyalty minority-owned and small businesses to grow and prosper as part of our supply • Frequent flyer program chain. Since the inception of our Supplier Diversity Program in 1989, American • AA.com/rainbow newsletters has spent more than $3.6 billion with certified women- and minority-owned • AA.com/women’s forums businesses. • Pillar organization support • Political support of the Employment Non-Discrimination Act In addition to our direct expenditures, we require majority contractors on major projects, such as airport terminal construction, to meet diversity objectives in their subcontracted work. Our sponsorship of Business Matchmaking since 2004 Brand Extension provides an opportunity for women- and minority-owned businesses to network • Sponsorships and bid on new business. • ERG community involvement • Employee volunteerism and board service • In-kind donations

57 AMR Corporation • Corporate Responsibility Report • Diverse Segment and Women’s Marketing The ability to communicate and serve customers with differing cultural backgrounds, experiences, languages, and expectations in a respectful way that resonates has become more important than ever. American uses a combination of third-party advisers, newly formed external advisory councils, ERGs, and relationships with key advocacy organizations to gain insights into how to provide the best travel experience for all customers.

Because service is the focus of our diverse segment and women’s marketing efforts, we recognize that we must go beyond marketing and sales to deliver a positive travel experience. Only then will we be successful in earning customer loyalty and retaining brand equity we’ve built over our 80-year history. Some examples of how we do this are highlighted in the box on page 55.

• Featured Diverse Segment and Women’s Organizations Although American partners with numerous organizations around the world, some key organizations supported by AMR include the Minority Business Council and the Women’s Business Enterprise National Council. In the African-American community, AMR sponsors organizations such as the NAACP, National Urban League chapters in our key locations, the National Black MBA Association, the Thurgood Marshall Scholarship Foundation, and Paul Quinn and Jarvis Christian colleges.

In the Hispanic community, the company supports the Hispanic Women’s Network of Texas; the League of United Latin American Citizens (LULAC); National Council of La Raza (NCLR), the National Association of Latino Elected and Appointed Officials (NALEO) National Conventions, the Latina Style 50 Best Practices on Diversity Conference, and many others. The lesbian/gay/bisexual and transgender (LGBT) team supports organizations such as the Human Rights Campaign, the Gay and Lesbian Alliance Against Defamation, Lambda Legal, and the National Gay and Lesbian Chamber of Commerce.

This Major League Soccer ad was placed in game programs at national and local levels. It features AA employees and demonstrates our commitment to diversity worldwide. Global Community • Global Commitment 58 In addition, AMR supports women’s organizations such as the Susan G. Komen AMR History of Diversity Foundation, Women’s Leadership Exchange, the National Association of Women MBAs, Women President’s Organization, and eWomen’s Network. AMR has a long history of promoting diversity, and it is an integral part of

Diversity the company’s culture. While there are numerous firsts, the timeline below highlights some of the company’s industry-leading diversity achievements.

1963 – Industry’s first African-American flight attendant hired

1964 – Industry’s first African-American pilot flies

1973 – Industry’s first female pilot hired

1986 – AMR’s first female captain

1989 – Established supplier diversity program

1994 – First AMR Employee Resource Group formed

1995 – Established AMR Diversity Advisory Council

Mid-1990s – AMR Diverse Segment Sales teams formed

2000 – First U.S. airline to offer domestic partner benefits

2003 – AMR Board Diversity Advisory Committee formed

2008 –AMR external advisory councils for women and lesbian, gay, bisexual, and transgender created

59 AMR Corporation • Corporate Responsibility Report Diversity Awards37

AMR’s focus on promoting diversity encourages - Ranked 25th in Equal Opportunity magazine’s Diversity our people to be advocates and elevates the annual Top 50 Employers, recognized by way we conduct business. We are proud of our readers as a company that proactively recruits accomplishments and are pleased to share some and hires minorities. American was the only of the recognition American received in 2008. airline to make the prestigious group. • CEO Gerard Arpey was featured on the cover - Named as one of the Diversity Elite 60 by of the inaugural edition of Diversity Executive Hispanic Business magazine, for commitment magazine. to Hispanic hiring, promotion, marketing, • For the seventh consecutive year since its philanthropy, and supplier diversity for the third inception, we earned a perfect 100 on the consecutive year. Human Rights Campaign’s Corporate Equality - Named an Employer of Choice in 2009 by Index, which measures companies’ fair and the Minority Corporate Counsel Association equal treatment of LGBT employees. for the effort of American’s Corporate Legal • American and American Eagle are honored Department in promoting diversity and to have been recognized as great places for inclusion minorities and women to work and for our CEO Gerard Arpey (right) presents board member Earl Graves with the - Received the Best Companies for Blacks in inaugural Award for Leadership, which will bear his name. The founder diverse culture: Technology Award in 2009 from the National of Black Enterprise magazine was elected to the AMR board in 1995 - Named as one of the 25 Most Noteworthy Black Data Processing Associates and and chaired the Diversity Committee since its formation in 2002. Companies in 2008 by DiversityInc WorkplaceDiversity.com The award will go to an AA employee who demonstrates exceptional leadership in diversity and inclusion. magazine. - Received a sixth consecutive LATINA Style 50 - Ranked ninth on the Association of Diversity award in 2008, recognizing the company’s Graves retired from the board in 2008. Board member Roger Staubach Councils’ Top 25 Company Diversity commitment to advancing the careers of — who is also an NFL Hall of Fame quarterback and successful Councils for 2009. businessman — was named to succeed him as chairman of the professional Hispanic women. Diversity Committee. - Selected by Diversity MBA Magazine as one of the 2009 50 Out Front for Diversity Leadership Best Places for Diverse Managers to Work. 37GRI standard disclosure 2.10

Global Community • Global Commitment 60 MILES FOR KIDS IN NEED In 2008, the American Airlines Miles for Kids in Need program provided air travel assistance to more than 300 children, issuing over 600 tickets to kids in need and their families. In addition to the million miles American donates annually to the program, more than 20,000 AAdvantage members chose to donate their unused miles for a total nearing 140 million miles.

The Miles for Kids in Need program, established in 1989, expanded its scope during the fourth quarter of 2008, to provide worldwide support through miles and other initiatives for more children and their families. The program also supports organizations dedicated to improving the quality of life for children with medical, educational, and social services needs, or for groups that heighten public awareness of children’s issues.

Some of the charities that have benefited from and made referrals to the Miles for Kids in Need program in 2008: • UNICEF Change for Good • Helping Hands for Honduras • Cystic Fibrosis Foundation • Childspring International • Flagship Charities • Association Neuf De Coeur • International Hospital for Children • Brucker Biofeedback Center at the • Shriners Hospitals for Children Miami Jewish Home and Hospital • Miracle Flights for Kids • China Mission

Additionally, American received mileage donations for the Make-A-Wish Foundation from approximately 12,000 AAdvantage members for a total of nearly 42.5 million miles. Lives of 31 children were brightened through the efforts of 800 employee volunteers in 29 cities across the AMR network, participating in WishFlight 2008. WishFlight is the Something mAAgic Foundation’s marquee event, sending Make-A-Wish children for a seven- day retreat in Orlando, Fla.

61 AMR Corporation • Corporate Responsibility Report American Airlines Celebrity Ski Weekend Chicago/Miami — Making Wishes Happen Benefits the Cystic Fibrosis Foundation Chicago’s Dream Flight Team made life a little easier for 78 kids battling American has been a national sponsor of the life-threatening diseases. In November 2008, the team raised $4,000 to Cystic Fibrosis Foundation since 1986. The send these deserving children to Disney World in style. Before boarding their relationship is one of the airline’s longest. The flight, the kids enjoyed a Wild West party at the gate, complete with giant annual Celebrity Ski Event raises funds to battle cacti, country music, face painting, and Bozo buckets. American employees cystic fibrosis, a life-threatening disease that affects nearly 30,000 children continued the festivities aboard a Boeing 757 they decorated, welcoming the and adults in the United States. Over the past 24 years, American has kids aboard with stuffed animals, goodie bags, candy, and a water salute. The raised more than $28 million for the foundation, and American is the largest event was supported by BP International, which provided the fuel, and more overall contributor to the organization. American’s fund-raising success and than 20 local companies that donated gifts for the kids. its in-kind support have resulted in its being designated the Cystic Fibrosis Foundation’s Outstanding Corporate Sponsor for the past 10 years. In honor of American, the award has been renamed the Spirit of American Award.

Kids at Heart Always at the heart of American Airlines, children worldwide again benefitted from the generosity of American customers last year.

Keeping with the annual tradition, customers offered their support for Miles for Kids in Need, a program supporting worldwide medical, educational and social service aid for children and their families by donating flyer miles.

AAdvantage miles donated provide aid to scores of children in need of some of life’s most basic necessities. The program has been in place for more than 20 years, helping children and their families.

Donate miles at AA.com/kids.

Dream Flight team members threw a Wild West party for children battling life-threatening diseases. The team raised $4,000 to provide them with a free trip to Disney World.

Global Community • Global Commitment 62 Students learning aircraft mechanics study an aircraft donated by American Airlines.

63 AMR Corporation • Corporate Responsibility Report Global Commitment: Focus on Communities

Our business is the economic backbone of communities throughout the world. We promote commerce, trade and economic prosperity because we are in the business of bringing people together and moving goods from one place to another.

The size and scope of our worldwide network connects major trade and financial centers such as New York and London, Miami and Buenos Aires, Chicago and Paris, Los Angeles and Tokyo. In smaller cities throughout the United States, Mexico, and the Caribbean, we provide the air transportation service that connects these communities to larger cities worldwide. And, in developing countries, we promote economic growth by providing the air service that brings their products to the U.S. and other international markets.

Our community impact doesn’t end there. The taxes we pay, the goods and services we purchase to run our business, and the money our employees spend from their paychecks all directly stimulate local economies and create additional jobs. And just as important are the many indirect ways we support communities. By contributing to local nonprofit organizations and through the time and talent of our employees, we believe we help make the communities we serve better places to live.

We are very proud that our size and scope allows us to make a meaningful contribution to communities. In 2008, we estimate that American contributed $115 billion throughout the U.S. economy and helped create 900,000 jobs.40 In this section, we will explain in more detail some of the direct benefits we offer communities, as well as highlight some of the many indirect contributions that we provide.

40Includes multiplier effect of local employee salaries, purchases, taxes, and nonprofit contributions. Our operations connect major trade and financial centers worldwide, such as Chicago O’Hare International Airport. Global Community • Global Commitment 64 Eagle Rallies to Assist Hurricane Victims Sharing Knowledge with Future Leaders In the wake of Hurricane Ike in September 2008, many of our Eagle colleagues More than 80 American and Eagle employees — and RJ, the American Eagle in Houston were left without power and water for days, and many suffered mascot — joined Junior Achievement of Dallas to adopt the students of Barton property damage. Eagle immediately mobilized to send non-perishable food Elementary in December. Teaching in teams of two, they volunteered their time to supplies and water, along with tarps to assist in the cleanup. teach 40 classes about the free enterprise system and economics. Community “So many of the simple basics that most of us take for granted were in short The volunteers have an opportunity to be role models and convey knowledge supply after the storm,” said Houston Hobby Airport General Manager Jim Ware. that will help the children progress as future members of the workforce. “The food and water that was sent to our employees met their immediate needs during a very difficult time.”

The Eagle team at headquarters and around the system swung into action and held bake sales, a raffle and other events to raise more than $5,000 to assist those impacted by the storm. “Words do not adequately express the appreciation our employees feel for American Eagle’s financial, physical and emotional support,” Ware said. “This is a great example of why we consider it a privilege to work for American Eagle.” American and Eagle employees joined RJ, the Eagle mascot, in helping Junior Achievement of Dallas teach students about economics.

Direct Investments by Fees/Taxes • Our $1.3 billion investment in a new terminal at John F. Kennedy International Aviation is unique in that the industry funds almost all of its infrastructure needs and does Airport, which will continue to contribute to the New York and the U.S. economy for not benefit from the government subsidies available to other industries.41 Landing fees, many years. air traffic control fees, passenger service charges, and other fees and taxes charged • We are helping to fund $2.9 billion for the current phase of the O’Hare to American and Eagle result in direct funding to each of the communities we serve. In Modernization Program at O’Hare International Airport in Chicago. These fact, airlines are subject to as many as 17 unique taxes of this nature. As a result of this improvements will improve efficiency of operations, reduce congestion at the system, we paid out $3.9 billion in taxes/fees worldwide in 2008.42 airport, and improve traffic flow at other airports throughout the country. • Terminal 4 at Los Angeles International Airport was redeveloped at a cost of $300 Direct Infrastructure Investments million. We routinely make investments in our airport facilities so our customers can benefit • We spent $20 million to refurbish and expand our London Heathrow Admirals Club from a pleasant and efficient travel experience when they start and end their journeys. In and First Class Lounge and $7 million to construct and furnish a new Admirals Club the past 10 years, AMR has spent more than $3 billion to upgrade our airport facilities at Tokyo Narita International Airport. These infrastructure improvements enhance in the U.S. and internationally. But our customers are not the only ones to benefit from the customer experience and have a positive impact on the airports. these investments. In addition to promoting long-term economic development in the

surrounding area, airport investments generate direct construction contracts and jobs for 41 43 GRI performance indicator EC4 local communities. Some examples of these investments: 42GRI performance indicator EC1 (2.1e) 43GRI performance indicator EC1 (2.1f) and EC8

65 AMR Corporation • Corporate Responsibility Report Economic Impacts, State by State American Supports the Economies of Developing Countries 2008 Total GDP 2008 Total 2008 Total GDP 2008 Total Dominican Republic State Impact (millions) Job Impact State Impact (millions) Job Impact The Dominican Republic is one of two nations on the island of Hispaniola. It is the second-largest Caribbean island nation with an estimated 10.1 million AK $14 * MS $81 467 Community people. The Dominican Republic is one of the largest economies in Central AL $104 91 NC $1,211 23,293 America and the Caribbean. It is considered a lower middle-income developing AR $195 3,403 NE $118 407 country, and its economic growth is fueled by imports and exports. Finance AZ $571 9,640 NJ $577 2,048 and foreign investment are the next largest factors in its growth. Agriculture and mining remain the most important sectors of the economy. CA $10,587 94,726 NM $223 1,115 CO $533 2,261 NV $1,177 6,755 In 2008, American transported more than 30 million pounds of cargo out of CT $229 4,159 NY $12,118 104,462 the Dominican Republic. These agricultural exports were 80 percent perishables, 10 percent textiles, and 10 percent other freight. The majority of DC $11,327 59,101 OH $336 2,728 perishables were transported to Miami, New York, Canada and Europe, while the FL $15,469 155,393 OK $5,944 67,457 majority of cut flowers were flown to Miami. All textiles were flown to the U.S., GA $291 1,355 OR $236 620 and the remaining freight was flown to the U.S. and Europe. Tourism is another HI $1,458 2,265 PA $511 2,154 industry fueling the Dominican Republic’s economic growth. The contribution from travel and tourism to employment accounted for approximately IA $224 1,732 PR $2,877 27,213 550,000 jobs — or one in every seven jobs — in 2008. American also flew IL $9,059 73,348 RI $25 * approximately 2 million passengers to and from the Dominican Republic in IN $179 1,011 SC $245 1,030 2008. This island receives significant benefit from American’s service. KS $53 419 TN $320 2,028 Haiti KY $128 1,959 TX $33,407 206,763 Haiti is one of the least-developed countries in the world. Social and economic LA $306 2,527 UT $157 370 measurements indicate it is falling behind other low-income developing MA $2,285 21,349 VA $167 758 countries. Approximately 80 percent of the population is estimated to be living in poverty. MD $255 989 VI $222 1,691 ME $3 9 WA $334 1,251 About two-thirds of all Haitians work in the agricultural sector, but agriculture MI $335 3,833 WI $149 1,302 generates only 30 percent of the gross domestic product. Mangoes and coffee MN $179 1,008 WY $82 * are two of Haiti’s most important exports. American transported 3.9 million pounds of cargo between Haiti and countries around the world. Tourism also MO $1,883 26,527 contributes to Haiti’s economy. American carried approximately 700,000 *Although we do not have employees in these states, passengers to Haiti in 2008. there is still a positive job impact to the state as a result of our operations.

Global Community • Global Commitment 66 We also support numerous terminal projects at many airports in midsized U.S. cities and at over 25 airports in international cities. In addition, investments in our maintenance • Komen for the Cure — Breast cancer affects one in every eight women bases also have a significant direct community benefit. Approximately $350 million in and shows no geographic, ethnic, economic, educational, or sexual orientation funding has been used to develop our Alliance Maintenance and Engineering Base in boundaries. American’s donations and sponsorship of ground-breaking research Fort Worth, Texas, which benefits the north Texas economy. by M.D. Anderson Research Center in Houston is showing encouraging early results. Indirect Community Investments Over the past decade — and despite some tough challenges — we continue to • Veterans and Military Initiative — The men and women who serve our be innovative and creative in finding ways to contribute to a wide range of nonprofit country also come from a wide variety of backgrounds and experiences. Most organizations because we recognize the interdependence of our employees, suppliers, importantly, we honor those who are willing to pay the ultimate price for our communities, and our company’s long-term success. After more than 80 years, we freedom. know we are in the business of serving people. • Miles for Kids in Need — Children are among those most vulnerable to You may have noticed that we have ended each section of this report with highlights of abuse and illness, so gestures of kindness bring great happiness to them and organizations and causes that are focus areas for AMR and which we support on multiple their families. AMR has a long history of supporting children’s organizations as a levels. They include: corporation and through employee-led efforts.

The American Cancer Society Relay For Life is one of many employee-led charity initiatives. Breast cancer research fundraising events including the Susan G. Komen Race for the Cure are the passion of many AMR employees.. 67 AMR Corporation • Corporate Responsibility Report • Employee-Led Charities — Our employees are passionate about giving back and enriching others’ lives. They frequently start their own charitable organizations or take 2008 In-Kind Donations by Major Category significant roles in organizing major events to aid those in need. At a corporate level, we are just as passionate about empowering and supporting these employees in their efforts. Other 2.9% Youth Development 2% Our efforts are not limited to these four areas. AMR and our employees also contribute Sports 3.9% to the communities in which we work and live in many other ways. Entertainment 4.4%

Education 6.9% In-Kind Donations The effects of AMR’s in-kind donations can be found in every country in which we operate and in most cities throughout the United States, large and small. In some cases, nonprofit organizations would have to reduce their services or activities if they did not Arts/Culture have the support they receive from AMR. 31.6%

Civic While we have not been immune to the economic challenges impacting corporations 18.9% around the world, we have done everything possible to continue supporting nonprofit organizations in our communities. In 2008, American contributed more than $28 Health/Human million of in-kind and cash support to hundreds of nonprofit organizations that varied in Services size, mission, and geographic scope. The chart at right shows the major categories of 29.4% nonprofit organizations that we supported in 2008.

Donation of Facilities and Services In times of crisis or national disaster, we take our responsibilities seriously. Historically, we In 2008, we donated our maintenance hangar at Dallas-Fort Worth Airport to have donated the use of reservations centers, hangars, and other facilities to assist local, be used as a transfer point for refugees from Hurricane Ike, which affected state, and federal authorities so that they can help those in need. Senior executives and thousands of people on Texas’ Gulf Coast. We also continue our historical support employees have also stepped up to provide specific expertise — and sometimes sheer of the Red Cross and use our aircraft to transport personnel and cargo for Airline manpower — to get the job done. Ambassadors, Medical Wings, Doctors Without Borders, and other organizations on missions throughout the world.

Global Community • Global Commitment 68 Employee Fundraising Activities Our employees also participate in numerous fundraising activities throughout AMR founded The American Giving Employee Charitable Fund Inc. nearly 10 years the year. A sampling: ago. It serves as the 501(c)(3) non-profit organization within AMR through which • UNICEF on-board collection for the Change for Good program U.S.-based employees channel their charitable donations. American Giving is open • Multiple ERG fundraising events to all American, Eagle and AA Credit Union employees. From front-line employees • Dress down days for various charities to corporate officers, employees at all levels use American Giving. American Giving makes investing in our communities easy, regardless of the employee’s position, Employee Volunteerism work base or hometown. In 2008, more than 2,600 employees donated upwards of Our employees — as individuals and as groups — volunteer their time $635,000 to nearly 1,000 organizations throughout the United States. and talents with a variety of charitable organizations and causes worldwide. Employees share their expertise, such as legal or technical skills, and serve on boards for many organizations. Employees also frequently play important roles in fundraising activities for nonprofit organizations. The diversity of our workforce and the global nature of our operations ensure that we participate in many aspects of our communities. Sample Organizations Receiving Cash Donations in 2008 from AMR Employees American Advocates, a volunteer program launched in 2004, has 10,000 volunteers. Employee volunteerism is important to American because it is the Our employees are passionate about helping others less fortunate. right thing to do. It also increases employee loyalty and pride to see AMR These organizations, and many others, benefited directly from employee involved in the community. The opportunity to engage in community service

Communities cash donations. is frequently a life-altering experience for employees, as well as those in the community who benefit from these contributions. Customer loyalty is often AA/AE Family Fund Airline Ambassadors International increased when customers see American and Eagle as airlines that go beyond March of Dimes UNICEF, U.S. Fund the services they sell to enrich the entire community. Tarrant Area Food Bank Make-A-Wish Foundation American Giving Dallas Women’s Foundation Our employees are so passionate about the well-being of others that many Fondos Unidos de Puerto Rico Doctors Without Borders, U.S. section have launched their own charitable organizations. A few examples: Something mAAgic Foundation Lambda Legal United Way Earth Share • Airline Ambassadors International — This non-profit organization Habitat for Humanity Women’s Haven of Tarrant County provides humanitarian aid to children and families in need as well as relief American Cancer Society The Salvation Army and development to under-privileged communities worldwide. It was founded Global Impact by an American Airlines flight attendant and continues to enjoy in-kind and

69 AMR Corporation • Corporate Responsibility Report employee volunteer support from American and American Eagle. Humanitarian missions in more than 100 countries have been completed since inception. Sample Awards/Recognition44

In 2008, Airline Ambassadors was able to improve the lives of more than 100,000 We are proud to have been recognized for our leadership and support of children in 20 countries and deliver approximately $3.5 million in medicine, medical Awards numerous organizations and communities. A few examples of our awards supplies, food, clothing, and school supplies directly to children in need. Volunteers and recognition include: also escorted 265 children for life-changing surgeries or orphans to new homes. • Obelisk Award from the North Texas Business for Culture and the Arts • Pat Mohler Award from the Tarrant Area Food Bank • Medical Wings — Created more than a decade ago by an American cargo • Friendship Award from the U.S.-Panama Business Council agent, this organization delivers medicine, medical supplies, and medical equipment • City of Fort Worth Environmental Excellence Award, received for the fifth to those in need. time in 10 years • Something mAAgic Foundation — A group of American and Eagle • Global Citizen Award from the Vijay Amritraj Foundation employees formed this organization, which focuses on making wishes come true • Jay Malina Award from Miami-Dade County’s economic development for children with life threatening illnesses and their families. agency • Paul G. Sheridan, S.J. Leadership Award from Boys Hope Girls Hope Additional examples of organizations with which our employees are engaged are • Puerto Rico Fish and Wildlife Service Award for enhancing artificial nests presented at the end of each major section in this report. used by endangered parrots

44GRI standard disclosure 2.10

The diversity of our workforce and the global nature of our operations ensure that we participate in many aspects of our communities. [ ] Medical Wings supplies are loaded onto an American aircraft for distribution around the world.

Global Community • Global Commitment 70 EMPLOYEE VOLUNTEERISM — HIGHLIGHTS OF A GLOBAL AIRLINE’S TRADITION American Airlines and American Eagle employees have a strong tradition of volunteering in their communities. Employees serve on organizational boards, volunteer their time, and raise funds for a wide variety of organizations that can be generally grouped into the categories of arts and culture, health and human services, civic, and education. This spirit of employee volunteerism extends beyond national borders and is a global effort to enrich the lives of all people. After all, AMR’s business is people. Events that took place in Chicago and Miami are highlighted on page 70, but many other examples tout the accomplishments of AMR American employees and their family members rolled up their sleeves on employees around the world “Hands On Miami Day” to pick up in 2008. discarded trash, plastic, wood and debris from the beaches of barrier islands off the coast of Coconut Grove, Fla. More than 3,000 volunteers took Medical Wings founder Glenda Johnson helps with on over 30 projects across Miami. a new wheel chair.

71 AMR Corporation • Corporate Responsibility Report Hope, Compassion Around the World Medical Wings International (MWI) provides hope and compassion for children around the world in need of life’s most basic necessities. MWI was founded 10 years ago by American employee Glenda Johnson after she witnessed a lack of the most basic healthcare services in communities she visited. She found children to be most at risk, succumbing to diseases and health issues that were controlled or eradicated in the Western world. Employees raised more than $45,000 for March of Dimes of North Texas.

In December 2008, an American aircraft carrying volunteers brought gifts and supplies for underprivileged children in Peru. American volunteers and medical professionals visited three orphanages in Peru to provide much-needed healthcare as well as gifts to the children.

“Impoverished children in Peru and throughout the world have very little access to healthcare,” Johnson says. “Our volunteers have saved children’s lives in communities with no real means to help them survive.”

Eagle Pulls for United Way Yelling, “Pull. Do it. Do it. Pull,” American Eagle’s James McKnight, acting as a plane pull Employees contributed almost $23,000 to Global Impact, American’s Information which sponsors international initiatives of organizations Technology Services department coach, guided his team members as they fought to pull a 95,000-pound airplane with like UNICEF and Doctors Without Borders. raised more than $30,000 for a rope. The effort was part of Miami AA and Eagle’s annual Tug-a-Plane for United Way. the Tarrant Area Food Bank in Food Drive/Dress Down Days. With seven corporate teams each donating $2,000 to participate in the tug, employees The company was honored with raised more than $14,000 during the November event, which raises funds to support the Tarrant Area Food Bank Pat various United Way agencies. Mohler Award for its efforts.

Toddlers from the Centro Hispanico Catolico Child Care Center, a United Way agency, were honored guests at the event, along with Antonio Freeman, former Green Bay Packers, Philadelphia Eagles and Miami Dolphins football player.

Each team competed in a timed contest by pulling the aircraft 30 yards. George Hazy, American vice president of the Miami hub, clicked the stopwatch as the official timekeeper. American flight attendants provided lunch aboard a Boeing 777 after the event, compliments of LSG/Sky Chefs. Miami-Dade Aviation won the plane pull and the grand prize of free Miami Heat tickets at the American Airlines Arena.

American and Eagle employees at the Miami Hub raise more than $200,000 for United More than $4,000 was donated to The Fellowship Foundation as part of our continued Way each year. support of disaster relief activities benefiting Hurricanes Katrina and Rita victims. Global Community • Global Commitment 72 73 AMR Corporation • Corporate Responsibility Report Global Commitment: Focus on Reliability and Customer Service

If there is a single metric that is a measure of our success at protecting and providing the most responsible, efficient and safest service to our customers, it is reliability. AMR strives to provide the safest air service possible. Our commitment to protecting our customers is manifested in the reliability of our service. Reliability is assured by a number of programs at AMR, some of which are highlighted here.45

Maintenance Operations: Performed In-House We in-source the vast majority of all maintenance work on our aircraft — no small feat and one that provides a significant advantage to our operations and customers. American completes more than 90 percent of all maintenance work and 100 percent of heavy maintenance at our own bases, far greater than the industry average of 30 percent. Our long record of performing maintenance activities at our own U.S.-based facilities means our maintenance work is completed by the most highly trained and proficient mechanics and engineers possible — experts on our aircraft who take pride and ownership in ensuring our aircraft are maintained to the highest safety standards.

45GRI performance indicator PR1

Global Community • Global Commitment 74 Investing in Dependability These operational improvements have led to the year-over-year improvements On-time departures and on-time arrivals are two basic expectations of our noted in the table above: customers. The Department of Transportation (DOT) defines an on-time arrival as scheduled arrival time plus 14 minutes (A+14). In early September 1. Increased Block and Ground Time 2008, we implemented several operational changes to support our front-line We increased block and minimum ground times 5 to 10 minutes in employees as we work to improve dependability. approximately 40 markets to counteract Air Traffic Control system (ATC) inefficiencies and weather. At New York AA DOT A+14 – Year-Over-Year Performance LaGuardia and Chicago O’Hare, we increased ground times by as much as 20 minutes. In November, we added additional block times in 90 several markets. 2007-2008 2008-2009 2. Increased Crew Co-Pairing of Flight 85 84.4 83.6 Attendants and Pilots 81.5 81.3 We increased crew co-pairing with the aircraft 80 to help with late arriving aircraft and delays 78.5 77.5 related to disruptive weather. Since the crews 76.1 stay with the aircraft, they are more prepared 75.6 75.5 75 for the next departure, which enhances dependability.

70 69.9 3. Maintenance Reliability 66.4 Aside from weather and ATC, maintenance reliability is the most significant dependability 65 driver. We opened a parts warehouse 62.0 61.7 at Dallas-Fort Worth Airport and created 60 precise planning and tracking of overnight 58.7 maintenance through a new system that enables maintenance employees to manage 55 workload assignments for all aircraft and stations for an operational day. We expect to speed the aircraft returning to service and 50 reduce required repair time. September October November December January February March

75 AMR Corporation • Corporate Responsibility Report 46 AA.com Receives Top Tech Honor American-Union Cooperation Recognized by Magazine American won the Tech Titan Award as part of the Dallas/Fort Worth Air Transport World magazine named American and the TWU winners of its Labor Metroplex Technology Business Council’s seventh annual Tech Titan Awards Management Relations Award. Editors praised the company-union effort to avoid program. American received the award for AA.com in the Technology outsourcing aircraft maintenance work, maintaining American’s own aircraft and Adoption category. Tech Titans was established in 2001 by the council to securing lucrative third-party contracts. It is only the sixth time in 23 years that recognize the best in innovation, leadership, and emerging technologies. the magazine has presented the award. Maintenance, Repair and Overhaul (MRO) Efforts Earn Awards Bob Reding, American’s senior vice president of technical operations, and Kansas City Mechanics Receive Prestigious Taylor Award John Conley, systems coordinator for American, were honored with Aviation At American’s Kansas City, Mo., maintenance overhaul base, the FAA presented Week awards for excellence in the aviation industry. The awards were six AMTs with the prestigious Charles Taylor Master Mechanic Award, which announced during Aviation Week’s annual MRO Conference and Exhibition recognizes the lifetime accomplishments of senior mechanics. in Atlanta, which explores the future of aviation MRO. American and the Transport Workers Union (TWU) have worked together to transform the Ebony Magazine’s Speaking of People Highlights Dave Campbell airline’s maintenance and engineering organization from a cost center to a David Campbell, Eagle’s senior vice president of technical operations, was featured in Ebony magazine’s spotlight on individuals moving upward and Maintenance Awards and Honors Maintenance Awards profit center.Overhaul & Maintenance magazine also honored American and the TWU with its Outstanding Achievement Award. onward.

4. Cross-Functional Coordination Changes in how our various operational departments work together are under way. Closer working relationships between key departments enhances communication and coordination, which is particularly helpful during disruptive weather. The goal is to prevent unnecessary On-time departures cancellations and accelerate aircraft returning to service. and on-time Customer Experience Leadership: arrivals are two Teaming & Technology at Work basic expectations Improving the overall customer experience — and demonstrating industry leadership in this area — is a key customer satisfaction strategy for the employees of American and Eagle. To of our customers. accomplish this, employees throughout the company are working collaboratively to develop [ innovative solutions in six key focus areas that most significantly enhance the customer ] experience: delays and delay management, gate interactions and boarding experience, on-board interactions, cabin interior condition, baggage handling, and baggage tracking and resolution. 46GRI standard disclosure 2.10

Global Community • Global Commitment 76 This spirit of collaboration benefits both employees and customers. Some 200- • Taxi Monitor — Employees in our operation centers and airports can track plus employee task teams are generating ideas designed to create a positive — to the minute — how long a departing flight has been away from a gate travel experience, resulting in a smoother-running operation, a more productive while waiting for takeoff. They can also monitor how long an arriving flight is on workplace, and greater customer satisfaction. the ground waiting for a gate and the number of passengers on board.

“AA employees are proud of the airline’s history of innovation and are leading • Diversion Tracker — This monitoring tool shows our operations center the industry in more ways than one,” said Dan Garton, Executive Vice President team all diverted flights throughout our system and identifies if flights are on of Marketing. “Our spirit of collaboration is the key ingredient to identifying time, how long they have been waiting to depart or arrive at a gate, and how challenges and designing creative solutions that lead to a positive working long flight crews have been on duty. It also allows our cockpit crews and environment and industry-leading levels of customer satisfaction.” airport employees to update the status of the aircraft and passengers on every diverted American flight. Our employees also have turned to innovation to ensure customers’ travel experiences remain safe and smooth. For example, our Flight Operations group • BagLink — At about 30 U.S. airports, an automated system of handheld recently designed, developed, tested, and implemented jet bridge enhancements bag tag scanners is helping us reduce the processing time required for bags that let pilots taxi their aircraft to gates equipped with self-parking devices during that arrive without passengers or are separated from passengers. It also allows electrical storms and safely allows customers to deplane instead of waiting on our employees to account for passengers’ bags much faster than they would the tarmac. manually, and it helps to more quickly reunite the bag and the customer.

Our System Operations Control and Information Technology Services groups also • BagFinder — This new Web-based application for all baggage service have partnered to substantially enhance the decision-making ability of our people representatives provides a user-friendly interface to help resolve customer during weather-related events. Among the tools they designed: service issues related to bags. BagFinder allows agents to learn the application at their respective stations without formalized training. More than 99 percent of • Gate Adviser — This Web-based platform consolidates a vast amount of American’s delayed bag records are now created and tracked in this system. information on a single PC screen for our gate agents. In one view, our agents can immediately learn and communicate the status of a flight crew, meal Each of these technology tools is instrumental in improving our ability to get information, ATC factors, and individual passenger connections. customers to their destinations safely, dependably, and on time, day after day.

77 AMR Corporation • Corporate Responsibility Report Improving Customer Service During Disruptive Weather • Active seat management: Seats held for delayed in-bound customers with Weather, high passenger loads, and air traffic control (ATC) issues — among no chance of making a connection are released for other passengers. other operational issues — also are part of the daily challenges for the airline industry. While poor weather and congestion related to the ATC system are • Trip insurance: Customers can go to AA.com to buy this protection, which beyond our control, American has taken decisive steps to improve overall provides reimbursement of prepaid, non-refundable travel expenses when a trip is performance and reliability during those situations. cancelled, interrupted or delayed.

• Storm Policy: Customers who call to request changes based on • Customer communication during extreme weather events: In each anticipated weather disruptions can receive change-fee waivers and will airport, we supply information brochures to customers delayed by extreme be accommodated to reach their destinations as close as possible to their weather. The brochures contain comprehensive information on how to proceed desired dates. This policy assists in reducing the number of potentially without having to contact an airport agent or reservations representative. inconvenienced customers during disruptive weather. Brochures also include important locations in the airport, hotel and other frequently used phone numbers, information about vouchers, frequently asked • Improved customer notification about reaccommodation: When questions, and links to related AA.com Web sites. a flight has been canceled for disruptive weather or ATC issues, we notify and give priority reaccommodations to our most frequent customers — ® those who have achieved Executive Platinum, Platinum, Gold AAdvantage 47 Among the accolades received by American for reliability and dependability: status — as well as to AAirpass members, elderly travelers, people with • Business Traveler readers give American top honors disabilities, unaccompanied minors and those who’ve purchased first-class • Global Traveler names American best in domestic first class and business-class seats. Awards • Brazil magazine names American best international airline • American Airlines Cargo wins an award at AirCargo 2008 Conference • Enhanced diversion plans: When an aircraft must be diverted to • American named best economy/coach class at OAG Airline Industry another airport, we make sure that the diversion airports are equipped Awards with the necessary equipment to handle arriving aircraft. For example, • AA Cargo Division receives customer excellence and innovation award designated diversion airports that previously didn’t have stairs to allow from Descartes Systems Group passengers to deplane from a Boeing 757 aircraft now have them. Additionally, diverted international flights are sent to airports with U.S. Customs facilities, so American has the option of deplaning customers if 47GRI standard disclosure 2.10 necessary. Diverted flights are spread across several airports to reduce backups on the ground.

Global Community • Global Commitment 78 Appendix A: GRI Index48

GRI Index Description Page GRI Index Description Page GRI Index Description Page 1.1 Statement from the most 2 2.9 Significant changes during 9 3.8 Basis for reporting on joint 5 senior decision-maker of the the reporting period regarding ventures, subsidiaries, organization. size, structure, or ownership. leased facilities, outsourced 2.1 Name of the organization. Cover 2.10 Awards received in the 28, 58, operations, and other entities 2.2 Primary brands, products, and/ 7 reporting period. 68, 74, that can significantly affect or services. 76 comparability from period 3.1 Reporting period (e.g., fiscal/ 1-2 to period and/or between 2.3 Operational structure of the 7-10 organizations. organization, including main calendar year) for information divisions, operating companies, provided. 3.9 Data measurement techniques 83 subsidiaries, and joint ventures. 3.2 Date of most recent previous 5 and the bases of calculations, report (if any). including assumptions 2.4 Location of organization’s 7 and techniques underlying 3.3 Reporting cycle (annual, 5 headquarters. estimations applied to the biennial, etc.) 2.5 Number of countries where 9 compilation of the Indicators the organization operates, 3.4 Contact point for questions 5 and other information in the and names of countries with regarding the report or its report. Explain any decisions either major operations or that contents. not to apply, or to substantially are specifically relevant to the 3.5 Process for defining report 5 diverge from, the GRI Indicator sustainability issues covered in content. Protocols. the report. 3.6 Boundary of the report 5 3.10 Explanation of the effect of any 5 2.6 Nature of ownership and legal 7 (e.g., countries, divisions, re-statements of information form. subsidiaries, leased facilities, provided in earlier reports, 2.7 Markets served (including 9 joint ventures, suppliers). See and the reasons for such geographic breakdown, GRI Boundary Protocol for re-statement (e.g.,mergers/ sectors served, and types of further guidance. acquisitions, change of customers/beneficiaries). 3.7 State any specific limitations 5 base years/periods, nature 2.8 Scale of the reporting 9 on the scope or boundary of of business, measurement organization. the report (see completeness methods). principle for explanation of scope).

48GRI standard disclosure 3.12 79 AMR Corporation • Corporate Responsibility Report Appendix A: GRI Index (continued)

GRI Index Description Page GRI Index Description Page GRI Index Description Page 3.11 Significant changes from 5 4.5 Linkage between 13-14 4.12 Externally developed 16, previous reporting periods compensation for members economic, environmental, and 19-20 in the scope, boundary, of the highest governance social charters, principles, or or measurement methods body, senior managers, and other initiatives to which the applied in the report. executives (including departure organization subscribes or 3.12 Table identifying the location 79 arrangements), and the endorses. of the Standard Disclosures in organization’s performance 4.13 Memberships in associations 16 the report. (including social and (such as industry associations) 4.1 Governance structure of 12-13 environmental performance). and/or national/international the organization, including 4.6 Processes in place for the 12-14 advocacy organizations in committees under the highest governance body to which the organization: highest governance body ensure conflicts of interest are • Has positions in governance responsible for specific tasks, avoided. bodies; such as setting strategy or 4.8 Internally developed 14-15 • Participates in projects or organizational oversight. statements of mission or committees; 4.2 Indicate whether the Chair of 12 values, codes of conduct, • Participates in projects or the highest governance body and principles relevant to committees; is also an executive officer. economic, environmental, and • Provides substantive funding beyond routine membership 4.4 Mechanisms for shareholders 12-13 social performance and the dues; or and employees to provide status of their implementation. • Views membership as recommendations or direction 4.10 Processes for evaluating the Partial strategic. to the highest governance highest governance body’s reponse body. own performance, particularly 13-14 4.14 List of stakeholder groups 5 with respect to economic, engaged by the organization. environmental, and social 4.15 Basis for identification and 5 performance. selection of stakeholders with whom to engage.

Global Community • Global Commitment 80 Appendix A: GRI Index (continued)

GRI Index Description Page GRI Index Description Page GRI Index Description Page 4.16 Approaches to stakeholder 12-15 EN1 Materials used by weight or 35 EN18 Initiatives to reduce 32 engagement, including volume. greenhouse gas emissions frequency of engagement by EN3 Direct energy consumption by 32 and reductions achieved. type and by stakeholder group. primary energy source. EN19 Emissions of ozone-depleting 38 EC1 Direct economic value 46, 63 EN4 Indirect energy consumption 33 substances by weight. generated and distributed, by primary source. EN20 NOx, SOx, and other 38 including revenues, EN5 Energy saved due to 33-34 significant air emissions by operating costs, employee conservation and efficiency type and weight. compensation, donations and improvements. EN21 Total water discharge by 37 other community investments, EN6 Initiatives to provide energy- 35 quality and destination. retained earnings, and efficient or renewable energy EN22 Total weight of waste by type 41 payments to capital providers based products and services, and disposal method. and governments. and reductions in energy EN24 Weight of transported, 41 EC2 Financial implications and 17 requirements as a result of imported, exported, or treated other risks and opportunities these initiatives. waste deemed hazardous for the organization’s activities EN8 Total water withdrawal by 37 under the terms of the Basel due to climate change. source. Convention Annex I, II, III, EC3 Coverage of the organization’s 46 EN10 Percentage and total volume 37 and VIII, and percentage of defined benefit plan of water recycled and reused. transported waste shipped obligations. EN16 Total direct and indirect 31 internationally. EC4 Significant financial assistance 63 greenhouse gas emissions by EN28 Monetary value of significant 30 received from government. weight. fines and total number of non- EC8 Development and impact of 63 EN17 Other relevant indirect 31 monetary sanctions for non- infrastructure investments and greenhouse gas emissions by compliance with environmental services provided primarily weight. laws and regulations. for public benefit through commercial, in-kind, or pro bono engagement.

81 AMR Corporation • Corporate Responsibility Report Appendix A: GRI Index (continued)

GRI Index Description Page GRI Index Description Page GRI Index Description Page LA2 Total number and rate of Partial LA13 Composition of governance Partial SO4 Actions taken in response to 15 employee turnover by age response bodies and breakdown of response incidents of corruption. group, gender, and region. 47 employees per category 12 LA3 Benefits provided to full- 46 according to gender, age SO5 Public policy positions and 15 time employees that are not group, minority group participation in public policy provided to temporary or membership, and other development and lobbying. part-time employees, by major indicators of diversity. PR1 Life cycle stages in which 72 operations. SO2 Percentage and total number Partial health and safety impacts of LA4 Percentage of employees 46 of business units analyzed for response products and services are covered by collective risks related to corruption. 14 assessed for improvement, bargaining agreements. SO3 Percentage of employees 14 and percentage of significant trained in organization’s products and services anti-corruption policies and categories subject to such procedures. procedures.

Global Community • Global Commitment 82 Appendix B: Greenhouse Gas Inventory Methodology49

AMR utilized the following greenhouse gas (GHG) Scope I direct emissions include GHG emissions GlobalGlobal Warming Warming inventory standards in conducting this GHG emission Gas associated with both stationary and transportation inventory: Gas PotentialPotential sources. Transportation sources include aircraft, company-owned vehicles and ground support Carbon dioxide (CO2) 1.0 • ANSI/ISO/NSF E14064-1:2006, Greenhouse equipment. Direct emissions are associated with Methane (CH ) 21.0 Gases-Part 1: Specification with Guidance at 4 activities at the three AMR maintenance and the Organizational Level for Quantification and engineering bases. Direct Scope I emission sources Nitrous Oxide (N2O) 310 Reporting of Greenhouse Gas Emissions and at the bases include steam generation and electrical Removals Hydrofluorocarbons (HFCs) varies generation, jet engine testing, fuel combustion from • Greenhouse Gas Protocol, A Corporate Accounting Perfluorocarbons (PFCs) varies company vehicles and ground support equipment, and Reporting Standard, Revised Edition, World and fugitive emissions of HFCs from refrigeration Sulfur hexafluoride (SF ) 23,900 Resources Institute 6 equipment. Table 1 Consistent with these standards, this inventory is based Scope II indirect emissions cover GHG emissions on the following principles: relevance, completeness, associated with purchased electricity and steam at consistency, transparency and accuracy. AMR has airport terminals, office areas, and airport terminals and made diligent efforts to meet these principles. maintenance and engineering bases. Fuel usage information, refrigerant usage data, natural Emissions of each these GHGs were converted to Scope III indirect emissions are not reported in gas, gasoline, and other pertinent operating information carbon dioxide equivalents (CO e) based on the 2 this inventory because their reporting is optional under was used to calculate annual emissions of each of the Global Warming Potentials provided in Annex C to both the WRI and E14064. Scope III indirect emission six GHG categories recognized under E14064. GHG E14064 and included as Appendix A to this report. sources include emissions generated by: workers is defined in E14064 as a gaseous constituent of The emissions of each GHG are converted to CO e 2 commuting to and from work, suppliers delivering the atmosphere, both natural and anthropogenic, that by multiplying by the corresponding global warming fuel or other goods to AMR locations, and contractors absorbs and emits radiation at specific wavelengths potential. picking up waste and recyclable products from AMR within the spectrum of infrared radiation emitted by the facilities. earth’s surface, atmosphere, and clouds. AMR GHG emissions are classified as direct and indirect emissions in accordance with industry standards. 49GRI standard disclosure 3.9

83 AMR Corporation • Corporate Responsibility Report GHG emissions were calculated in general accordance The accuracy of throughput data is dependent upon vehicles is tracked at the station or maintenance with the principles and industry standards referenced the methodology and tools used to track throughput base. The data is tabulated and summarized at AMR above by multiplying a throughput by an emission data. Since more than 99 percent of Scope I direct headquarters. In some cases, the data point for some factor. Throughputs are the quantities of: jet fuel GHG emissions are attributed to jet fuel consumption, of the smaller stations was not readily available. In consumed, natural gas burned, gasoline and diesel fuel the accuracy of throughput data is dependent primarily such cases, a throughput was assumed based on the used in fleet vehicles and ground support equipment, on the accuracy of the jet fuel usage data. AMR tracks throughput for a similar station. Thus, the accuracy of and electricity purchased. Emission factors represent the quantity of jet fuel consumed on each flight. The some of the throughputs that make minor contributions the quantity of GHGs generated per unit of throughput. data is recorded after each flight and tabulated within to GHG emission totals may not be highly accurate. The accuracy of the GHG inventory is dependent on a central database. AMR’s annual fuel use is based However, the accuracy of the throughputs accounting the accuracy of emission factors and the accuracy on this data set and believed to be accurate to within for more than 99 percent of GHG emissions is highly and completeness of throughput data. The emission at least +/-3 percent. The data is cross-checked by accurate. factor data is based on readily available information in comparing to jet fuel purchased quantities to confirm the literature. Because the conversion from carbon to data accuracy. Purchased electricity and natural gas The overall accuracy of GHG inventory is believed to carbon dioxide is well understood, the emission factors quantities are based on the utility bills with the monthly accurately reflect GHG emissions to within at least utilized are believed to be highly accurate (within +/- 1 usage quantities compiled within a central database. +/- 4 percent of actual GHG emissions based on the percent). Fuel used in ground support equipment and fleet assumptions above regarding the accuracy of the emission factors and throughput data.

Global Community • Global Commitment 84 GHG Summary

Fuel Oil (Distillate/Diesel)(No. 1, 2, and 4) Purchased Electricity Propane Emission Factors Factor Units Reference* Factor Units Reference* Factor Units Reference* metric tons CO e/ Ref. 5, 72.31 kg/MMBtu Ref. 5, Appendix H GHG0.69 Calculations 2 5.42 kg/gallon Ref. 7 megawatt-hours Appendix F metric Heat content = Ref. 3, Page 45 0.00542 ton/gallon 86,300 Btu/gallon CO2 72.31 metric ton/gallon Ref. 5, Appendix H metric tons/gallon Derived from factors 0.01026802 fuel above

0.01055 kg/MMBtu 0.00000548 metric tons/Mw-hrs Reference 7 0.000910565 kg/gallon Ref. 7 metric 0.01055 metric tons/109 Btu 9.10565E-07 ton/gallon CH4 Derived from factors 1.4981E-06 metric ton/gallon above

0.00063 kg/MMBtu 0.00000948 metric tons/MW-hrs Ref. 7 5.46339E-05 kg/gallon Ref. 7 metric N O 0.00063 metric tons/109 Btu 5.46339E-08 2 ton/gallon 8.946E-08 metric ton/gallon

*See page 87 for global warming potential details and references.

85 AMR Corporation • Corporate Responsibility Report GHG Summary (continued)

Jet A Fuel Combustion Natural Gas Combustion Gasoline Emission Factors Factor Units Reference* Factor Units Reference* Factor Units Reference* Ref. 3, page 45; heat metric tons/103 HHV 70.8716 of combustion = 5.67 0.059 short ton/106 Btu Ref. 1, page 55 70.91 short ton/106 Btu Ref. 4, Page 32 Btu MMBtu/bbl metric tons/gallon Derived from factors 9567.66600 0.0507 metric ton/GJ Ref. 1, page 55 19.36 pounds/gallon Ref.3, Page 64 fuel above CO2 metric tons/1,000 Derived from factors 9.567666 53.06 kg CO2/MMBtu Ref. 4. Page 32 0.008781696 metric tons/gallon Conversion gallons above metric tons/gallon Derived from factors metric ton CO /109 0.009567666 52.79 2 Ref. 5, Appendix F fuel above Btu

Ref. 6; 1054 0.5 kg/terajoule Joule/Btu; 135,000 0.00528 kg/MMBtu Ref. 7 0.001882 kg/gallon Ref. 7 Btu/gallon Jet A metric Derived from factors 0.0005 0.00528 metric ton/109 Btu 0.000001882 metric tons/gallon Conversion tons/terajoule above Derived from factors 4.74383E-07 metric tons/tera Btu above CH4 Derived from factors 4.74383E-19 metric tons/Btu above Derived from factors 6.40417E-14 metric tons/gallon above metric tons/1,000 Derived from factors 6.40417E-11 gallons above

Ref. 6; 1054 2.0 kg/terajoule Joule/Btu; 135,000 0.00011 kg/MMBtu 0.000627 kg/gallon Ref. 7 Btu/gallon Jet A metric Derived from factors 0.002 0.00011 metric ton/109 Btu 0.000000627 metric tons/gallon Conversion tons/terajoule above 1.9E-06 metric tons/tera Btu N2O 1.9E-18 metric tons/Btu Derived from factors 2.56167E-13 metric tons/gallon above metric tons/1,000 Derived from factors 2.56167E-10 gallons above

*See page 87 for global warming potential details and references.

Global Community • Global Commitment 86 GHG Summary (continued)

Global Warming Potential References: GHGs (Recommended 100-year GHG Global Warming Reference 1) Calculation Tool for Direct Emissions From Stationary Combustion, Potentials) Version 3.0, July 2005 CO 1 Ref. 2, page 5-4 2 2) Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions,

CH4 21 Ref. 2, page 5-4 Batelle, December 2003 Technical Guidelines-Voluntary Reporting of Greenhouse Gases 1605(b) N2O 310 Ref. 2, page 5-4 3) HFC-23 11,700 Ref. 2, page 5-4 Program, Office of Policy and International Affairs, USDOE, March 2006 World Resources Institute, Discussion Paper for a Natural Gas HFC-32 650 Ref. 2, page 5-4 4) Transmission and Distribution Greenhouse Gas Reporting Protocol, Jan. HFC-41 97 Ref. 2, page 5-4 26, 2007 HFC-125 2,800 Ref. 2, page 5-4 5) Instruction for Form EIA-1605, Voluntary Reporting of Greenhouse Gases, HFC-134 1,000 Ref. 2, page 5-4 April 25, 2007 HFC-134a 1,300 Ref. 2, page 5-4 6) International Panel on Climate Change 2006 Guidelines, Volume 2, HFC-143 300 Ref. 2, page 5-4 Chapter 3, Section 3.6.1.2, Table 3.6.5 HFC-143a 3,800 Ref. 2, page 5-4 7) Clean Air Cool Planet Campus Carbon Calculator, CA-CP version 5.0, 2006 HFC-152a 140 Ref. 2, page 5-4 HFC-227ea 2,900 Ref. 2, page 5-4 HFC-236fa 6,300 Ref. 2, page 5-4 HFC-4310mee 1,300 Ref. 2, page 5-4 PFCs Not applicable to AA Ref. 2, page 5-4

SF6 23,900 Ref. 2, page 5-4

87 AMR Corporation • Corporate Responsibility Report Appendix C: Fleet Inventory

Average Seating Capital Operating Average Age Equipment Type Capacity Owned Leased Leased Total (Years)

American Airlines Aircraft Airbus A300-600R 267 10 - 16 26 19 Boeing 737-800 148 62 - 15 77 9 Boeing 757-200 188 92 1 31 124 14 Boeing 767-200 Extended Range 167 3 11 1 15 22 Boeing 767-300 Extended Range 225 47 - 11 58 15 Boeing 777-200 Extended Range 247 47 - - 47 8 McDonnell Douglas MD-80 140 108 64 107 279 19

Total 369 76 181 626 15

American Eagle Aircraft Bombardier CRJ-700 70 25 - - 25 6 Embraer 135 37 33 - - 33 9 Embraer 140 44 59 - - 59 6 Embraer 145 50 110 - - 110 6 Super ATR 64/66 - - 39 39 14

Total 227 - 39 266 8

Global Community • Global Commitment 88 Global Community Global Commitment 2008 Corporate Responsibility Report Prepared by AMR Corporation